I can't test anything for you but maybe this has something to do with the

LASTDRIVE=

command? (I don't even know if W98 uses this)

I know that KIX tries to map the logon-share to the Z:\ drive to execute the scripts. Maybe you have a conflict there, because you're saying that the script works fine if you connect it manually.

could you try this in your batchfile?:
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net use Z: \\server\netlogon
Z:\kix32.exe Z:\script1.kix
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or play around with some other driveletters?

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Greetz,

Roger the Young
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The code is out there...
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