System Policy

Hi,
I have a winnt4.0 platform.
Can anybody explain briefly how to create a system policy for win/98 computers to lock down certain options on there desk top.I do know about the templates, also that it sould be saved as config.pol.But I’m not sure where to save it. I do have directory replication happening between my pdc & bdc.Also is there anything that I have to do to the clients computer(win98 machines).
Thank’s