Am trying to install a Dynalink internal pci modem.   On BOOTUP a new pci ITEM is found and I then install the driver for the modem in Win.98, downloaded from the Dynalink site. 

Device Manager shows that the driver is not installed and a search for new hardware shows there is no new hardware found.

Any ideas please?Does the New Hardware Found window come up ? ? If so at that point it to the location of the driver and continue...
Are you SURE the drivers are for Win98 ? ?
What model is this ? ?try it this way switch of , remove the drivers and the modem, restart the computer, switch it of again then install the drivers and refit the modem.
there is a tool in win98 CALLED HWINFO /UI

Go to start then run and WRITE in  HWINFO /UI   
there is a space between the O and the forward slash / . this tool should show you the hardware , drivers ,  IO, IRQ , DMA system conflicts etc,
File attributes show as MAGENTA
Registry entries show as GREEN
Configuration Manager issues show as BROWN
Warnings are shown in BLUE
Error messages show in RED
mind you my memory is going i hope HWINFO still works