I've been able to run nearly any game on my PC when I had 98. (not SE) I could run 4 color games all the way to Rise of Nations.
Duke Nukem, Death Rally, Tyrian 2000, Ultima Underworld 1 & 2, Ultima 0 - 9 (running 8 was a bitch, and 0 is Alakabeth), Shadow Warrior, Blood 1 and 2, Zone 66 (This one takes the prize), Lamborghini American Challenge, Albion, TES: Arena & Daggerfall, Betrayal at Krondor & Antara, Return to Krondor (its 3d but its ok), and Crystal Caves.
All those ran with Digital Sound (if allowed) and Midi. They also played at full speed! And not a single one crashed except Zone 66... It was hard to get it running, but I won in the end.
Now for your problems, just get a Sound Blaster 16 PCI for $10-20 from http://www.newegg.com It runs any game in DOS and it fast.
I use an Ensoniq Soundscape PCI for my DOS sound, not an SB Live! 5.1. But the SB Live! has DOS support I believe.
Well, anyways, a soundcard that has DOS support like an Ensoniq or a Sound Blaster will work great for you under win 98 (even if not in dos mode)
Nearly all those games ran in Windows 98 (gui, not dosmode) too.
-Kain
Athlon Xp 1700+ @ 1.833ghz
ASUS A7N8X v1.4
Crucial 256mb Pc 2100 @ 166 mhz
Chaintech GeForce 4 Ti4200 128mb
Western Digital 40gb WD - 400
Windows 2000 Professional
Creative SB Live! 5.1 Dolby
Maxtop Case w/ 350w PSU