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Your configurations are fine. The router is providing DNS transfer, the IP's are correct. Now all you have to do is set up file and print sharing properly, let's start barking up the right tree.
1. Both computers must be in the same workgroup.
2. Both computers must have different names.
3. File and print sharing for MS Networks must be enabled on both computers.
4. On the 98 box, primary login must be Client for MS Networks, and you must log in. You do not have to set a password unless you want to.
5. In order to access the 98 box from the XP box, the XP firewall must be disabled and something must be shared on the 98 box - and the 98 box must not have a firewall installed.
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