Provided the configurations are exactly the same (i.e. same server names being used) between the clients, then a "host not found" error likely indicates there is some sort of DNS resolution error. Does the host specified in the OE configuration resolve from the Win 98 computer in question?
For example, can you open a MS-DOS Prompt and, from the command line, type:
ping smtp.domain.com
(where smtp.domain.com is the name of the host)
and the ping command responds with something similar to:
C:\>ping smtp.domain.com
Pinging smtp.domain.com [10.199.10.48] with 32 bytes of d
ata:
Reply from 10.199.10.48: bytes=32 time=60ms TTL=126
Reply from 10.199.10.48: bytes=32 time=40ms TTL=126
Reply from 10.199.10.48: bytes=32 time=30ms TTL=126
Reply from 10.199.10.48: bytes=32 time=30ms TTL=126
Ping statistics for 10.199.10.48:
Packets: Sent = 4, Received = 4, Lost = 0 (0% loss),
Approximate round trip times in milli-seconds:
Minimum = 30ms, Maximum = 60ms, Average = 40ms
If not, your first order of business would be to get your TCP/IP networking setup properly.
-Jeff