I am not sure if this will work on Windows 98 but it worked for me on Windows 2000. I downloaded Updater for HotSync v3.1.1 from http://www.palm.com/support/download...hs_update.html . After I installed it, I now see "infrared" as an option when the Hotsync icon on windows tray is right clicked.

Also on your phone, be sure to select "IR to a PC/Handheld" instead of the default "Direct Serial" in HotSync application.