The only similar experience I've encountered with Systemworks could not be resolved using the steps you mention and a clean install of Windows followed.
That cured it, but it is a bit on the radical side.
Where the problems are stubborn and a fix is not obvious I normally start with a clean slate. It is far easier to do that sometimes than try to clean up a mess when you don't know or can't find the cause.
i had a similar problem and their is a confict with live up date and a windows security update their was a patch on the norton web site but my problem was with xp not 98 bt its worth alook at symantic .com