Download windows configurator from here. click here
It was especially built for 98 \ ME. Just click on the download, between 300k and 500k, on the left and pick which version you want. There is a box to tick if you want that annoying icon removed from your desktop.
I already tried Tweak UI before, and recall that it could be used to remove the icon, but I wondered why it should be necessary to use special tools to remove it. After all, many users do not have a network.