You should be able to do that.
However, you will need to use the appropriate run-time engine for Win-98.
In this case, you may build it as an executable with a seperate run-time engine instead of creating an installer.
OOps.. it was a 2 part question..
Yes, LV does package the run-time engine is you build it as an installer. But in this case, it may be better to do it seperately.. because I did not see where you can select the run-time engine..
It may contain both... but I'm not sure..
-JLV-