In Safe Mode, set up a clean boot, and see if you can discover the cause:
How to Perform Clean-Boot Troubleshooting for Windows 98
http://support.microsoft.com?kbid=192926

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Glen Ventura, MS MVP W95/98 Systems
http://dts-l.org/goodpost.htm
> During a fresh install of win98b "Newly formated HD" the
> computer freezes at the point of "Default Channel Setup".
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>
> thanks