It is my understanding that there are subtle changes to the restart/shutdown features throughout the Win95 & Win98 product lines. Thus the results for Win95 OEM, SP1, OSR2, OSR2.1 & OSR 2.5 & Win98 FE & SE can all be subtly different. Also, I believe there are Win95 system patches directly related to this issue & thus introducing further confusion. In my limited experience, I am not sure that there is a great deal of difference between a fully patched version of Win95 OSR2.5 & the original OEM release of Win98. They are very close relatives.

I not sure these points are relevant thought since I suspect this isn’t a Win95 versus Win98 issue rather I suspect it is a generic Win9x issue.

I wish that I had more time to investigate & help you on this. Two years ago, I could of discussed this issue in great detail but it has been a while since I worked on the issue.
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Jack