The resources figure present in Windows 95, 98, 98SE and ME is a legacy hold-over from Windows 3.1.  
The actual "free resources" is the lower value of two 16-bit 64KB stacks, called the GDI and User.  Because of the memory management model of the Win3.1/9x/ME, every program with a 16-bit component must take up some of the resources in the stacks.  
The stacks are limited, non-expandable and completely independent of the amount of system RAM that you have.