PC hangs at Windows 98 screen

I have a Dell PC that is running on Windows 98, first edition. It is encountering the shutdown problem, where it is hanging at the windows 98 screen. It shuts down without problem in safe mode. In MSCONFIG, I select only the config.sys and reboot the PC. When I shut down the PC, it still hangs at the Windows 98 screen. I enter msconfig and view the config.sys file and all the statements have a REM in front of it. I assume that nothing in the config.sys file is being loaded since all statements are REM.

Has anyone encounered this problem?
If so, what else can I do to correct this problem? Any help would be appreciated.