Guys,
I just had a very similar "cannot find start.exe" message with any application I tried to click on and I fixed it by reloading Windows 98SE on top of Windows 98SE. I had to start from DOS to do the reload since Windows wouldn't execute anything. After that, no problem.
-joslincomputer
I really think you have a bad hard drive. When Scandisk does that kind of repetitive stuff that's almost always a dying hard drive. Replace the HD and reload 98. Then attach the bad drive as a slave and you should be able to salvage most of the key data to the new drive.
Or, if you have the...
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