>Is there a way to make a MS-DOS terminal work on a network, where the Server has Win98.
Yes - you'll need an appropriate NDIS-compatible driver and the MS-DOS netwroking support, available from Microsoft. It will not change the machine to allow it to run Win9x stuff, and it will not be able to handle machine names, share names or long file names that have restricted character sets or where the names are too long.
If someone held a gun to my head and said do this, I'd try to set up the machine with WIn9x and simply always start up in MS-DOS compatibility mode