Networking 98/XP

OK: I used to have a fully functional network, but since the HD crashed on the 98machine, I am working with a clean install of 98II

I'm running one machine with XP, one with 98. I have enabled sharing on both machines, so data can be exchanged in both directions.

While on the XP machine I can browse and transfer files to and from the 98 machine.

While on the 98 Machine, I cannot even see the XP machine!!

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NEW INFO:

Now, i can actually see the XP machine from the 98 Machine, but when i try to navigate to it I get the following error:

"Not enough memory is available, quit some programs"

I have 256 MB of ram, and 41 MB is used. How much memory can it take to make a network connection? I never used to have this problem!!!

Thanks in advance for any help!