I have a old windows 98 computer on a network which I would like to make
a server out of. Can Win98 support a web server or FTP server? I also

Windows is really not very good as a server (any version)
Win98 is especially made as an desktop operating system and is very good
at that.
If you want to have a special computer as a server, I think you should
install Linux or FreeBSD on the computer instead, unix-like operating
systems
mainly constructed for being servers (note: you should probably not select
a linuxdistribution that anyway tries to be a desktop os for your server).

If you on the other hand want to use the computer as both your desktop
computer
and a server with not verry high load, at the same time, then win98 will
work fine for you.

most webservers in the world use apache (but there are others too)
If you want to install apache without have to learn lots of things
then use XAMPP for Windows http://www.apachefriends.org/en/xampp.html
but perhaps get another version of MySQL if you want that database.

(in win98 you might need to add or change a line in config.sys
shell=c:\windows\command.com c:\windows /e:2048 /p
to allow for more environment variables.)

as FTP-server use for example version 0.9.14a of filezilla server
http://sourceforge.net/project/showf... ase_id=404348

or if it is ok for you to run programs that is not opensource
then you can use for example http://www.zftpserver.com/
http://www.xlightftpd.com/ or http://www.warftp.org/ ftp servers


but if you are not using your server also as an desktop computer
consider a small non graphical free linux-distribution.