Ok here's the deal...... vb's installer is bad, very bad. But right now I have no other choice as the install is way to complex to do it via a bat.
Something I assumed you all realized but apparently not. I code on a XP machine..... if you are running anything less than XP and it prompts you do overwrite a file DO NOT let it overwrite. It has the xp dll and thus will not run on the 98 machine. As I said the vb installer is stupid.... it came out before xp or 2000 were even thought of.
Now the question..... Why don't i make a 98 install? Well because I don't have a machine running 98 (98 sucks I got rid of it as soon as I could) and thus have no way of knowing the differences.
If someone who is running 98 can successfully replace the files, simply send the changed one's to me and I'll make a 98 cab file. Or alternativley I can remove the offending dlls all together, but that means you will be required to install the latest version of windows media player or whatever other dependancies as well.
I apologize to anyone who can't get it to run, but remember this is a hobby and I only personally care about getting it to run on my system. Although I do my best to make sure it still runs on 98se I'm not going to loose any sleep wondering if it does.

As davwil said you can always comment out or delete entries in the setup.lst that are giving your system heck. You guys might wnat to try installing wmp again and then installing laz again minus the msdxm.ocx