[quote] or will a XP Pro machine not work on a simple network? <hr></blockquote>

This says it does
<a href="http://support.microsoft.com/default.aspx?scid=kb;EN-GB;q306856&GSSNB=1#10" target="_blank">Release Notes for Windows XP 64-Bit Edition Setup (Q306856)</a>

You only want one workgroup.

Is xp using what your 98 peers are? by way of protocol and services. 98 setup not using netbui?