windows98 as a server

Hi we have a clients who runs 30 pc’s with a file server running win98 the main applicaton all pc’s run are on the server the network they are using is lantastic ver 8.0 the server comes up with low in memory & resource errors the server is a AMD K6300 with 192mb memory. pc’s lose there connection to the server regualry. there network cable is rj45 100mbs there hub is a d-link 10/100mbs. can anyone help with ideas on how to solve these problems I think it’s the OS. The hard drive is a western digital. Other people say it’s not the OS because the server does nothing just sits there sharing it’s drive.