from the directx site at microsoft.....
DirectX 9.0a improves the graphics, security, and performance of your operating system. Download and install this update for your ****Windows 98****, Windows ME, Windows 2000, or Windows XP-based system.
Q. Will installing DirectX 9.0 cause my existing titles to fail?
A. Backward compatibility is a key feature of DirectX. We do application compatibility testing with a large number of released DirectX-enabled titles and a number of pre-release titles every time we release a new version of DirectX. In rare cases, some titles are "version coded" to accept only a single version of DirectX. These titles are almost always updated by the manufacturer to fix this behavior. These few cases aside, we are not aware of any compatibility problems with any previously released DirectX-enabled titles. In some cases, these programs may even run better with DirectX 9.0.
Q. Are there any known issues with regard to DirectX 9.0?
A. Due to enhancements in the way DirectPlay functions, it is strongly recommended that all users who want to join or host multiplayer games upgrade to DirectX 9.0. A user with earlier versions of DirectX may have trouble joining or hosting games, or my see a significant performance reduction when playing with users who have 9.0 installed.
Some video card manufacturers have updated drivers that are specifically designed to work with DirectX 9.0. It's possible that these drivers will benefit performance, quality, or stability of games running DirectX 9.0. Please make sure you check with your video card manufacturer to see if such drivers exist for your video card.
Q. I'm looking for earlier versions of DirectX but can't find any. Where are they?
A. DirectX 9.0 has been released, so we no longer provide earlier versions of DirectX. Please download DirectX 9.0.If you are running Windows 98, Windows Me, or Windows 2000. The DirectX 9.0 runtime includes transparent support and backward compatibility for all previous versions of DirectX.If you are running Windows 95, the latest version of DirectX you can use is DirectX 8.0a.
system requirements..............
Operating System Microsoft Windows® 98, Windows Millennium Edition (Windows Me), or Windows 2000, Windows XP.
Hard Disk Approximately 65 megabytes (MB) of available space for installation. Once installed, you can delete the installation files. The remaining DirectX files use approximately 18 MB of hard drive space. If you had an earlier version of DirectX installed on your computer, you will see little difference in used space on your hard drive. DirectX 9.0 will overwrite the earlier versions.
supported platforms..........
***Windows 98***, Windows 98 SE, Windows Millennium Edition (Windows Me), Windows 2000, and Windows XP support DirectX 9.0a; the latest version that Windows 95 can support is DirectX 8.0a
I think you may be thinking of Win95, I can`t find anything in the knowledgebase either re: problems with Win98 and DX9, as far as I can tell DX9 and Win98 work together perfectly, I have over 60 games on this system alone that are "state of the art" and 3D intensive, they all run with no problems at all, in fact at the moment I have switched to the debug version since I am playing with C++ and Directx....no problems so far in either version of DX9.
Mentor.
PS: can`t see a warning on the site for Win98 anywhere either, I went all through the install sequence up to the point of downloading, can you supply a link?