I'm not sure what you are trying to acomplish with DNS in Win98. But here is a short explaination of DNS:
DNS only tells you what's the IP Address of the user friendly name you are using to connect to the computer (I.E. www.any.com = IP Address-xxx.xxx.xxx.xxx).
Once the computer that tries to connect to the user friendly name (in the above example www.any.com) knows that www.any.com is IP Address xxx.xxx.xxx.xxx it connects to that IP Address on what ever port it is trying to connect (80 for the web [http]).
The above is the simple process of connecting to www.any.com when that server only runs one web site.
If however you want to host more than one web site on one computer (lets say www.any.com, and www.any2.com), the process involves one more step:
Since the client is connecting using HTTP. HTTP has an option called Host Header. The HTTP Server (the web server) will ask the client (browser) what host are looking for, the client then responds with the host it is looking for in our case www.any.com.
This option is supported on IIS 5.0 (which comes with Windows 2000). I'm not sure about IIS 4.0.
DNS has nothing to do with the Web Server.
Continued....