Group Policies

I have set up a group policy that effects the proxy settings in IE.  I don't know if this is the right way to do it but I just made a new folder under User and Computere Active Directory and under that folder I made the policy.  So then I just started to move the user names into that folder.  I know it works for XP machines and more than likely 2000 but my main question is if this policy will take in effect for windows 98 machines???
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windows 98 machines "know" nothing about GPOs so GPOs will never take effect on them. GPOs are for use on 2000 and newer OSes.

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Windows Server 2003

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