From Technet article Windows 98 Explorer Cannot Copy Large Files (Q318293):
When you use Windows Explorer to copy a file that has a size of 2 gigabytes (2 GB, or 2,147,483,648 bytes) or larger, the file copy process does not work, and you receivean error message that is similar to the following error message:
Error: Cannot create or replace " file name.xxx ". The parameter is incorrect.
CAUSE
This problem can occur because of a problem in the versions of the Shell32.dll file that are included with Windows 98 and Windows 98 Second Edition. The root cause is a generic file operation which is used by the shell in Windows 95/98 and Microsoft Windows NT 4.0 which interprets values that are greater than 2 GB as negative numbers.The problem was eliminated as part of many changes to the newer shell that comes from Microsoft Internet Explorer 5 used by Microsoft Windows 2000 and Microsoft Windows Millennium Edition (Me).
On Windows 98, the Shell32.dll file originates as part of Internet Explorer version 4.0. On Windows 98 Second Edition, Shell32.dll originates from Internet Explorer 4.01 Service Pack 2.
WORKAROUND
To work around this problem, copy the files by using the COPY command from a command prompt.
STATUS
Microsoft has confirmed this to be a problem in the Microsoft products that are listed at the beginning of this article.
This problem was corrected in Windows Millennium Edition, Windows 2000, and Windows XP.
MORE INFORMATION
Installing a newer version of Internet Explorer does not resolve this problem, because later versions of Internet Explorer don't update Shell32.dll on any platform except Windows 2000 and Windows Me.
