There is a Microsoft fix for this on their Win 98 download page (not on the update page, but on the download page). I don't remember the URL, but someone else will provide.  This works for a while, then every 6 months to a year you'll need to run the fix again.

>Hi,
>I'm Mandar Naik from India.This is my first post.
>Here goes...
>
>I have problems shutting down windows 98SE,I replaced the VxD's from 98SE
>and installed the ones from 98,now the system goes beyond the "Windows is
>now shutting down" screen and hangs up with a black screen,previously (with
>the VxD's from 98SE) the system stopped responding after the "Windows is now
>shutting down" came up..I have tried out everything mentioned on Jim's site
>but nothing works..
>http://www.aumha.org/a/shutdown.htm
>
>Appreciate the education,
>Mandar
>
>        The NOSPIN Group provides a monthly newsletter with great
>       tips, information and ideas: NOSPIN-L, The NOSPIN Magazine
>           Visit our web site to signup: http://freepctech.com
>

__________________________________________________________________
The NEW Netscape 7.0 browser is now available. Upgrade now! http://channels.netscape.com/ns/browsers/download.jsp

Get your own FREE, personal Netscape Mail account today at http://webmail.netscape.com/

        The NOSPIN Group provides a monthly newsletter with great
       tips, information and ideas: NOSPIN-L, The NOSPIN Magazine
           Visit our web site to signup: http://freepctech.com