I would think deleting all drives including the Z drive should cause trouble for Win9x but I can't see how this would lead to intermittent problems.
In theory if you pre-map the "netlogon" share before deleting the z drive & don't ever let your script try to find files through the default path, I believe then you can delete the z drive in Win9x without negative reprecussions. Thus if you mapped netlogon as L: you would call your script
L:\logon.bat
And in your this file you would call
L:\kix32.exe l:\logon.kix
and through out your kix script you could specify the L drive when you call other scripts.
Another point, with Win9x clients the default user directories created by the NT user manager can not be easily mapped by DOS, Win9x, or non MS systems. Thus you may need to create an alternate system for creating user shares & attaching them.
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Jack