Sorry it took so long....but yes, IO.SYS, the hidden system file, in Win 98SE is actually a binary executable file that will abosolutely exceute commands that most of us would expect to see coming from config.sys, or autoexec.bat. If you tell Win98 to do a step by step start-up, you will see the commands IO.SYS is holding. Typically, you will see HIMEM.SYS, IFSHLP.SYS, and SETVER.EXE being excuted, although some vendors like Creative can get "creative" in their installation scripts, writing new commands to this file. To stop them, you can use the debug command and manually edit IO.SYS (not for the faint of heart) or simply replace the IO.SYS file from your CD, or boot diskette.
So, the only reason that Win98 is able to work "without a config.sys or autoexec.bat" is that they are in essence built-in. The files are available simply to provide backward compatibility to software and/or devices as well as one more function...for overriding the SET values in IO.SYS. For instance IO.SYS by default will "SET" FILES=60. If you need more, or less, you can "override" by placing a similar SET command in config.sys. When the machine re-boots, it will execute IO.SYS, setting files to 60, then execute the local config.sys where your command will "re-SET" the files to ????.
This brings up the next main potential use of IO.SYS... memory management. Win98 still utilizes the same basic memory model as DOS 6.22 so the usage of the 1st 640K is still critical. The settings provided in IO.SYS are meant to be generic fail-safe entries that will allow basic functionality, making it easy for novices to install the OS, but they are sometimes insufficient. This is especially true of people who still use and depend on DOS programs, or an older sound card, etc.
Hope this helps....Let me know if you need further data.
Let me know if you need further detail on this one...
Tom Whitehead
twhitehead@commeq.com