I don’t have any particular exotic hardware on my system, but Windows 7 still struggled to find drivers for basically everything. Screen resolution was limited to 640 x 480, and my external mouse didn’t work because apparently Windows 7 doesn’t have USB support. Bizarre. I’ll spare you the details of what I had to do to get the wireless working, but let’s just say it involved 27 hours of crying.
I'm not 100% certain, but it does appear that Windows 98 is at end of life. You can see here: http://support.microsoft.com/default.aspx?scid=fh;[ln];LifeWin It appears that Critical updates should still be available until June, 2006 though.