Ahhh...I'm just running Win98 on my VMWare installation, and it's fine with the special VMWare video driver - you need to run it full screen, though, or else it is very sluggish (because it paints within a regular X window rather than on the root window, I guess).
The linux file buffer cache actually means that win98 stuff runs really quite nicely, doesn't seem to keep the disk chattering around nearly as much as it does when running native.
Why do I use win98? 'cause I just read e-mail, browse, sometimes use word, and filemaker pro (my homebrew slide database for tracking photo sales, etc). Nothing *real* :)
Of course, if I did any real windows work I'd get Win2K.