Well I guess I'm assuming for two reasons. I can watch the command window as the script is running and can see the line which calls the mapdrive.kix file with no error. But that is an assumption. ALSO, when I run the script after logging into the 98 pc the script runs with no issues. Here's my scripts - forgive, the're pretty hacked up at this point.
LOGIN2.bat
REM @echo off
Rem Branched startup script for Kixtart.
Rem Windows XP drops all parameters after EXE if %0 is used.
Rem %0\..\ is only required for Windows 95, 98, and Me.
Rem Detect OS (NT or other)
if (%OS%) == (Windows_NT) goto NT_XP

goto cont9x


REM **** this is the win9x section ******

:cont9x
REM ECHO Checking for Windows Terminal Server session
REM if not "%SESSIONNAME%" == "" goto :metaframe9x
REM if not "%WINSTATIONNAME%" == "" goto :metaframe9x

echo TermServe 9x login script is executing

REM \\cluster_01\util$\kix32.exe %1 mapdrives.kix
REM \\cluster_01\util$\kix32.exe %1 %0\..\mapdrives.kix
\\cluster_01\util$\kix32.exe mapdrives.kix
goto :exit





:NT_XP
ECHO Checking for Windows Terminal Server session
if /i "%SESSIONNAME%" == "Console" goto :cont
if not "%SESSIONNAME%" == "" goto :metaframe
if not "%WINSTATIONNAME%" == "" goto :metaframe


:cont

REM Get SRVINFO.EXE from w2k resource kit
REM "%0\..\SRVINFO.EXE" > NUL
REM if errorlevel 4 goto :exit

ECHO WinNT_2k Login Script Running
title Please Wait - WinNT_2k Logon Running
\\cluster_01\util$\kix32.exe \\cluster_01\util$\mapdrives.kix
goto :exit


:metaframe

REM Get SRVINFO.EXE from w2k resource kit
REM "%0\..\SRVINFO.EXE" > NUL
REM if errorlevel 4 goto :exit

ECHO TermServ Login Script Running
title Please Wait - TermServ Logon Running
\\cluster_01\util$\kix32.exe \\cluster_01\util$\termserv.kix
goto :exit

:exit
******************

Mapdrives.kix contains a bunch of these:

If InGroup("domain\ABC Users")
use j: "\\ServerName\ShareName$"
EndIf