you might be having a FAT32 vs NTFS problem
Uh, no SMB Shares have no filesystem they use SMB protocol. Here is what needs to be done:
1. Manually set the IP of windows 98 to 192.168.0.1 - subnet 255.255.255.0
2. Manually set the IP of XP to 192.168.0.2 - subnet 255.255.255.0
3. On the 98 Machine, make sure in networking that Microsoft Windows Networking is installed and make sure that is used for the login. On next reboot (in 98) put in username used on Windows XP machine into the login screen that comes up (don't click cancle)
4. On the XP machine, turn off "Use Simple File sharing" (shares created with this on aren't accessable in 98)
5. create a share on the XP machine that you can use.
6. On windows 98 machine goto start-> run and type in \\192.168.0.2
Your share should pop up on the XP machine
KMF