psellnow,
I'm not going to dispute your feelings about Micro$oft's networking. I happen to agree completely. If IPX works for you and it makes you feel more secure, great! I'm not sure I would feel the same. IPX is an aging protocol and had some security flaws big enough to cause major enterprises to rethink their directions and use of the protocol.
If you've got cable internet and more than one computer using it, you've either got a router, a proxy server or Internet Connection Sharing. If you've got a router, chances are it is doing NAT and has some firewall protection for incoming access. A proxy also does some level of address translation and provides a measure of incoming access restrictions. I believe ICS is the weakest of the three but still has some protection.
None provide outgoing protection.
In my setup, I've got a router doing NAT. In addition, I use Kerio Personal Firewall [free for personal use] to protect against trojans or any other rogue software from trying to get out to the internet. It allows me to use the simplest, most reliable networking [NetBIOS enabled TCP/IP] on my "always on" connection without fear of being detected. I've tested this using Steve Gibson's "Leak Test" and "Sheilds Up" and everything shows up in stealth mode. I've also changed the bindings so that any non-essentail ones are removed for security purposes.
Take a look here
In particular, check out (4) "What can I do about this" and (5) "Network Bondage".
I'm not looking to convert you. Obviously, you know what you are doing and are correct in your approach. This is just additional information for you. As for the condition you are experiencing, I would still lean more towards the IPX protocol being the culprit. Other factors you might want to check are:
[ul][li]Power Management on the XP machine[/li]
[li]User accounts and permissions on the XP machine
You need to have an account that exactly matches the account used on the W98SE machine with permissions to access the files folders on the XP machine[/li]
[li]Both machines use the same default protocol[/li][/ul]
Sorry I couldn't be more help.
The Old Man