Tell me how you got the computers to see each other! I am currently trying to network 2 xp pcs with 3 98SE pcs, and the xps can see each other, the 98SE's can see each other, but no luck between the two! Weirdly they share internet fine!
With regard to internet sharing, in internet tools, set up internet to be accessed via the LAN. I don't know how to see the status of the LAN connection in 98SE, sorry!