I spent a while trying to figure out why I couldn’t connect to a Win98 folder share that I had in a VMWare Virtual Machine. I was using Share-Level access control:

So I should have been able to just provide the password and I would be good to go. But I could not get connected. I kept getting a prompt for the password and it kept telling me the password was incorrect.
Long story short.. I finally realized that Win98 only allows up to 8 characters for a share-level password.

I was inputting a 9 character password and didn’t realize that it was cutting off the last character. Of course Windows XP accepts more than 8 characters for a password and so it was happily accepting all 9 characters and consequently it was not matching up with the password contained on the Win98 share which was comprised of only the first 8 characters.
I cut off the last character for the password I was inputting on the XP side and Walla. Problem solved.