Windows 98 does not support this functionality. You could search for
security software that may do a similar job, eg
http://www.sharewareconnection.com/titles/make-folders-invisible.htm

Signature
Jeff Richards
MS MVP (Windows - Shell/User)
> Could someone please tell me how to set up a PC with Windows 98 for two
> users so that they cannot see each others folders.
>
> TIA
> Anne