the MSIMG32.DLL should be in your c:\windows\systems32 folder in windows 98. (for images)Some graphics functions are very simple if you use msimg32.dll. They are - GradientFill and TransparentBlt.
First go to find files tpye in MSIMG32.DLL just incase it may still be there.Also you may have had more than one of the same dll's.
If you go to start,run.type in sfc click ok windows will do a systems file check if missing sfc should ask you for source to retrieve file.Have your Win98 disk handy to extract the file from.
If you have any trouble getting MSIMG32.DLL any one with win98 or xp on there system can copy and paste for you to put into c:\windows\systems32.(EVEN SENT BY E-MAIL) Attachment.