See this Microsoft article about Windows 98 shutdown problems:
http://support.microsoft.com/support/kb/articles/q238/0/96.asp
This article describes how to troubleshoot shutdown and restart problems in Windows 98 Second Edition specifically, not Microsoft Windows 98. For additional information about troubleshooting Windows 98 shutdown problems, click the article number below to view the article in the Microsoft Knowledge Base:
Q202633 How to Troubleshoot Windows 98 Shutdown Problems
The following topics are discussed in this article:
Windows 98 Second Edition Shutdown Supplement
Troubleshooting
Common Causes of Shutdown Problems
Known Issues
IRQ Steering
Resume on Ring and LAN
Plug & Play BIOS
NVRAM/ESCD
Fast Shutdown Registry Key Is Enabled
Antivirus Program
Replacing the Configmg.vxd File
Functions Performed During the Shutdown Process
There is also a "Windows 98 Second Edition Shutdown Supplement" provided by Microsoft to address this problem.
See this link for more information and download instructions:
http://www.microsoft.com/windows98/downloads/contents/WURecommended/S_WUFeatured/Win98SE/Default.asp
The first thing I'd look at is that Fast Shutdown feature and disable it.
(REMOVE SPACES from the pasted URLs.)
Maxwell
