Hi Mike, I run Win 98SE and have another suggestion which you may find of interest.
If you go to click here
and download a file called newdefrag.zip (near the bottom of the page) you will be able to install this in your Windows 98SE. This is the Defrag.exe file which they now install in Windows ME.
The file comes complete with all instructions for installation.
Apparently, by the time Microsoft had got to Windows ME they had sorted out the Defrag problem.
I find that the Defrag.exe file from Win ME is about 10 times faster than the standard 98SE file and is much more stable.
I have been using it for years now with no problems whatsoever and it's FREE.
Also be sure to stop ALL running programs including the Screen Saver, A/V and Firewall.
Hope this helps.