Can you "see" the XP machine from the 98 box? If so create a share on XP and browse to it from 98 and put the files over instead of grabbing them from XP.
I finally got it working now. On 98 i changed Primary Network Logon to Client for Microsoft Networks. Logged on both machines as same user. Uninstalled zonealarm from 98 and shut it down in XP. Checked network neighborhood on 98 and it worked then checked on xp and it was good. thanks to everyone who helped resolve this issue.
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