Well, I found 3 articles at Technet on this error, and each one says it could be something different.
Article 135464 says that your router is forwarding UDP broadcast. The article is here:
http://support.microsoft.com/default.aspx?scid=kb;en-us;135464
(please remove any spaces)
Article 143153 says that the subnet mask is incorrect on the client system (the Win98 machnine). That article is here:
http://support.microsoft.com/default.aspx?scid=kb;en-us;143153
(again, remove any spaces)
And article 224131 states that this could be due to a mismatched duplex setting on a switch. The switch could be on full duplex, while the NIC in the Win98 machine could be half duplex. That article is here:
http://support.microsoft.com/default.aspx?scid=kb;en-us;224131
(yep, spaces are evil!)
So, take a look at each article, and try what each one says until your problem is solved.
hope this helps