MrMateczko wrote:

ConservativeSwapfileUsage=1 is your friend to completely disable swap file under 98SE. (actually to make it 0 bytes constantly, but it's the same thing)

No, I'm afraid you are gravely mistaken. That does something else entirely.
https://support.microsoft.com/en-us/kb/223294

You can disable the swap file in the System control panel, but Win9x is designed to use virtual memory and that is a bad idea. See http://freepctech.com/pc/002/XP_MYTHS_001.shtml for more details.

or maybe even make 98SE run entirely from the RAM Disk?

That would be impractical, to put it mildly.

I know about M$ explanation, but it makes the WIN386.SWP file constantly 0 bytes on my rig no matter what I do on it. Without it, it's about ~50MB after startup.
And yes, I said it wrong about it "disabling", I should have wrote "making it always not used but still there".

About the impracticality, you mean it would always be a snapshot of the same system image, meaning it would be impossible to commit any changes? How about making a system image at shutdown?

You would also have to read that system image back into RAM every time you start up. And you would have to somehow persuade Windows 98 to boot from the RAM drive in the first place.