I had to re-format and re-install Win98SE. I have a dial-up internet account and an external modem.
Now when I dial my internet acocunt no. the dialog box says "verifying username.." and then it says "Logging on to Network.." - this take time but eventually does connect. I can't remember how to configure my 98 so it does not "Log on to ...", just straight away connect after verifying username & password".