Hello there Sean,
Point 1 answer. Yes, there is a Dial Up Networking component installed, and it did work when I initially set up W98 anew 6 weeks or so ago, but has stopped since all of the changing of IP addresses, File Sharing etc. etc.
Point 2 answer. Yes, I did click the boxes off and then clicked them back on again. It probably asked for the W98 CD, but to be honest it has asked for it so many times recently I forget.
Andy