Its your PPPoE software thats the problem, not Dial-Up networking etc. You probably are using Connection Manager/NTS/Enternet, right?
RASPPPoE is much stabler, lighter and more seamless to use, which means windows will actually know that you are online not offline to every program.
Download: from
http://user.cs.tu-berlin.de/%7Enormanb/
PS: If you are using Win98SE you also need a patch for Windoze that has prblems
with NDIS drivers ..
http://support.microsoft.com/support.../Q243/1/99.ASP
Uninstall all the network protocols and adapters that NTS uses (just remove anything that is not:
Client for Microsoft Networks
Network Adapter (name)
Dialup adapter
TCP/IP -> Network adapter (name)
TCP/IP -> Dialup adapter
reboot and then follow the directions listed here or in your downloaded zip file:
http://user.cs.tu-berlin.de/%7Enormanb/README98.HTM