I cannot make a "straight, working" build from that version.
Anyway, this works for me, in the sense that it works UNTIL I get to the SAME error in Qemu, no matter if I try with the .iso or with the .iso image on (virtual) hard disk.
Let's start from the "current" (the ones in version dated Aug 21 2010 01:04:25 AM) (inside the floppy image BOOT.IMA)
A:\DOS\xmsdsk 96000 X: /t /y /c2 A:\DOS\DOSlfn A:\DOS\shsucdx /d:oemCD001 /L:Y copy start.bat X:\ A:\dos\7za.exe x Y:\WIN98\Windows.7z -oX: set comspec=X:\WINDOWS\command.com
BTW the "copy start.bat X:\" is senseless, as I see it, as there is NO such file anywhere that I can find.
device=A:\DOS\XCDROM.SYS /D:oemCD001 DEVICE=A:\DOS\HIMEMX.EXE /testmem:off DEVICE=A:\DOS\ifshlp.sys DEVICE=A:\DOS\dblbuff.sys
you want the 2.1 version:
SHSUCDHD 2.1 (10k, includes MASM source). If you want to use an image within Win9X, you'll need this version (or use SHSUDVHD).
Copy the shsucdhd.exe inside the \Dos\ directory inside the BOOT.IMA.
Change the AUTOEXEC.BAT as follows:
A:\DOS\xmsdsk 96000 X: /t /y /c2 A:\DOS\DOSlfn A:\DOS\shsucdhd /F:C:\Win98LCD.iso /V A:\DOS\shsucdx /D:SHSU-CDH /L:Y copy start.bat X:\ A:\dos\7za.exe x Y:\WIN98\Windows.7z -oX: set comspec=X:\WINDOWS\command.com
Remove the unneeded loading of XCDROM.SYS from config.sys
DEVICE=A:\DOS\HIMEMX.EXE /testmem:off DEVICE=A:\DOS\ifshlp.sys DEVICE=A:\DOS\dblbuff.sys
Rebuild the .iso, rename it to Win98LCD.iso (probably not necessary, but I do like 8.3 names (or try changing the name of the image in the above modified Autoexec.bat).
Start with the usual (I am presuming that you have the Win98LCD.ISO on (hd0,0) grub4dos command lines:
map (hd0,0)/Win98LCD.ISO (0xff) map --hook root (0xff) chainloader boot
In any case this release is IMNSHO "botched" as it is using an almost senseless approach (using an el-torito no-emulation .iso image to load a floppy image , to later needing SHSUCDX to re-access the .iso/CD ).
Previous versions were much more "linear", you had a no-emulation .iso that loaded a super-floppy image.
If You want I can put up a download for the earlier version I have that uses this "rightful" approach.