System policy editor

Hi,
I’m trying to create a system policy on a winnt4.0 server for a win98 computer,I do save it as config.pol.I do know how to create it, I also save it to my export folder on my pdc(I do have a bdc w/directory replication).I always thought that as long as the win98 machine is logging on to the domain there is nothing else to do.I have my export folder security & permissions set to read.But it does not work.Does anybody use a system policy in this way.If so can you please let me know what I might be doing wrong.