Reinstall system. Do not install CStar.
I believe the problem is caused by CStar.
Reasoning:
1. You have some problem with display.
2. The original system do not have this problem.
=> Some software modified the display part of the system.
3. The only software you installed that could modify display
subsystem is CStar.
4. CStar is system dependent. There is no stable version for W98SE.
=> Problem located.