Win98 ignores "logon path" option. [global] ... logon path = \\%L\%U\profile .... Domain Logon works find but, Win98 creates USER.DAT, Desktop, Recent, ... in \\%L\%U
This was a change in 2.0.6/2.0.7; see /usr/doc/samba-2.0.7/WHATSNEW.txt.