Windows 98 and Win2k are totally different animals. Windows 98 still has a 16-bit kernel; it is basically DOS with a pretty face. Win2k, as well as XP and NT, are 32-bit to the core and, as such, can pre-emptively multi-task. That explains - among other things - why the Windows Task Manager works really well under Win2k/NT/XP and works like utter crap under Win98.
In Win98 (as with DOS), a programmer can directly access hardware (such as the individual pins of the RS-232 intfc). Same as DOS. Under Win2k and the other 32-bit Windows flavors, a programmer has no access to hardware.
Since dongles are hardware, their proper operation REQUIRES driver installation under the 32-bit Windows flavors (2k, NT, XP). Without the proper driver-level software layer installed, anything can happen. Under Win98, you may be able to get away with not installing the driver layer, but I do not recommend it.
James Broder
Broder's Skunkware Scoring & Timing Software
http://www.skunkware.tv