I really was hoping to not get into the "you really should upgrade to 2000 or XP" discussion here. I actually have both of those operating systems so upgrading is a possibility, but the fact is while my hipix would definitely work to record the HD material under either of them, I would run into problems with the DVD playing and scaling. Not unsolvable problems certainly, but right now with my ATI radeon 7200, the driver version I'm running for 98 is very stable. I have zoom player working very well using the video filters from the ATI MMC 7.6 and the audio filters from PowerDVD XP 4.0. It took me working on this many hours to get to this point, and I'm not ready to reinvent the wheel yet to change operating systems. Also, the HD is recorded in 1 minute files which are about 137 MB each, so I never run into a maximum file size limit. Basically, as Steve said, I'm currently very happy with my setup under Win98. When MS releases Freestyle with SP1 for XP, I may reconsider.
Anyways, thanks for all the replies everyone.