Another problem you may suffer is the XP computers can't have a description, the shares must be all lowercase and upto a max of (I think) 16 characters with no odd characters, numbers or spaces.

Networking between the two architectures is a little difficult I admit, but with some perseverence it is possible. Also try running the networking wizard on 98SE a few times, restarting after each try because it doesn't always save the settings.