I setup Win98SE today. I used the vidalia-bundle for 0.2.0.34. Installed and ran. It works fine.
http://interloper.org/tmp/tor/2009-02-12-win98se-tor-works-0.png and http://interloper.org/tmp/tor/2009-02-12-win98se-tor-works-1.png In fact, I can't make either Tor or Vidalia crash. If I set the total system memory to 80MB, as suggested by the original poster, Win98SE swaps to death, but eventually does run vidalia and tor. So, without further data, screenshots, code snippets, etc, I cannot replicate the problem. -- Andrew