You shouldn't have any problems networking 98 to ME, I've done it on multiple systems in my apartment without a hitch.

However, the ME machine is going to want to run it's built in "Home networking Wizard", and then want you to run it on the other machines as well. It's not difficult to do, but can be a hassle with all the rebooting required. But all and all, it's pretty simple, and once you walk through it, you'll have it down in no time. If you have trouble, message me.

Also, as a side note, you don't need all the protocols installed. I'd stick with TCP/IP, and whichever logon client you prefer. (Client for Microsoft Networks should suffice for you, as well as TCP/IP.) Also, you may want to check to make sure you're bindings are set up properly.

Hope this helps,
-Aryoche