MSN stole your Windows 98 version of IE?
While installing Windows 98 Second Edition on a Virtual PC 2007 virtual machine, I was running into issues with IE being hijacked by the MSN connection wizard.
In fact, they've also hijacked the Connect to the Internet shortcut on the Desktop.
However, if you run icwconn1.exe from the Run menu, you should be able to connect successfully, instead of having MSN try to find a modem.
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