I had this same problem and I had to log the user from the Windows98 on the windows XP box. I then logged off and used the username for the windows XP box. BTW all the users were domain accounts and had been added to the local account on the XP machine. The log off and log onto the XP machine...
Citrix is a great option, however will you be using it enought to justify the price. I am a consultant and I work primarily with doctor's offices. There might be a cheaper solution for you depending on how frequently you access the system. Let me know.
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