Before you do this, is it possible for you to up the memory on your system, that way your computer will have more system memory.
By the way how much memory has your system?.
If you can get hold of it "WIN98SE" is more suited for memory than the normal "WIN98".
Copied from:
http://support.microsoft.com/kb/232558/EN-US/
Err Msg: Missing Himem.sys. Make sure that the file is in your Windows directory and that its location is correctly specified in your CONFIG.SYS file.
SYMPTOMS
When you try to load Windows, one of the following problems may occur:
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Windows stops responding (hangs) at the logo screen.
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Windows reports the following error message
Missing Make sure that the file is in your Windows directory and that its location is correctly specified in your CONFIG.SYS file.
where is a device such as HIMEM.SYS.
CAUSE
These problems can occur if you have added the NOAUTO parameter to the "DOS=" statement in the CONFIG.SYS file. For example:
DOS=HIGH,UMB,NOAUTO
This parameter can also cause your computer to hang at the first Setup reboot because IFSHLP.SYS is not loaded.
RESOLUTION
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Edit the Config.sys file and remove the NOAUTO parameter from the DOS= statement.
-or-
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Edit the Config.sys file and insert the required DEVICE= statements so that the necessary devices are loaded during startup. The required statements are as follows. Add these lines after the "DOS=HIGH,UMB,NoAuto" line:
Device=C:\Windows\Himem.Sys
Device=C:\Windows\iFSHLP.Sys
NOTE: If Windows is installed in a folder other than the Windows folder, adjust the two lines as necessary to list the folder in which Windows is installed.
For additional information about how to edit the Config.sys file, click the article number below to view the article in the Microsoft Knowledge Base:
MORE INFORMATION
You can modify the Config.sys and Autoexec.bat files by using the System Configuration Editor tool (Sysedit.exe) or in MS-DOS mode. To do this, view the steps in one of the following sections.
System Configuration Editor Tool
To modify the Autoexec.bat and Config.sys files in Windows 95 and Windows 98:
1.
Click Start, click Run, type sysedit in the Open box, and then click OK.
2.
On the Window menu, click either C:\AUTOEXEC.BAT or C:\CONFIG.SYS, depending on the file that you want to modify.
3.
After you make the changes to the file, click Save on the File menu, and then click Exit on the File menu.
4.
You must restart your computer before the changes to the Autoexec.bat or Config.sys files take effect.
MS-DOS Mode
To modify the Autoexec.bat and Config.sys files in MS-DOS mode:
1.
At the MS-DOS prompt, type edit autoexec.bat or edit config.sys depending on which file that you want to modify.
2.
After you make the changes you want, press ALT+F and then X. When you are prompted to save the changes press Y or ENTER.
3.
You must restart your computer before the changes to the Autoexec.bat or Config.sys files can take effect.
Please post back if you have anymore problems or questions.