Ok, there seems to be a problem with enabling virtual memory.

From the System Properties, Performance tab, I am told that virtual
memory is not enabled. When I bring up the virtual memory dialog box,
the radio-button "let windows manage my virtual memory settings" is
selected, and the following information is shown in grey:

Hard Disk: c:\ -14440 MB Free
Minumum: 0
Maximum: no maximum

When I select the radio button "Let me specify my own virtual memory
settings" those settings change to this:

Hard Disk: c:\-14440 MB Free
Minimum: 0
Maximum: 51096

I changed the maximum to 512 (I assume that's mega-bytes) and
restarted. Virtual memory was still showing as being disabled. I set
both the min and max to be 512 and restarted again. It still said
that virtual memory was disabled, but this time the Hard Disk value
had changed to -13928 MB Free (a difference of 512). I changed both
to 128 and still virtual memory was still disabled.

Prior to each change, I looked for win386.swp in the root directory,
but it was never there (even when I tried to unhide it using attrib).

So something wierd is going on with the swap file and virtual memory.
Might have to resort to messing with registry or .ini settings to see
if I can get it going. Any known issues with Win-98 showing a
negative number for hard drive space or otherwise for refusing to
enable the swap file?