I have found the forum extermely useful in helping me set-up & get my ipod working under Win 98SE and as promised in my original posting (http://www.ipodlounge.com/forums/showthread.php?s=&threadid=5462)
would let members know my overall solution. Hope some one finds it useful:

System:
PC: Windows 98SE 30GB 256 Mb RAM and 160Gb external firewire drive
iPod: 3rd Edition 30Gb
MP3 Ripping & Playlist Software: MC9

To get the ipod working follow Adam's sticky (http://www.ipodlounge.com/forums/showthread.php?s=&threadid=6581) . The firewire patch will get your firewire card working and the ipod working with Apple's updater software.
As for software I settled for MC9 (over XPlay or Ephpod with MMJB). I have had some learning to do with this software particularly in getting the synching to operate. In the end the solution appears to be (as posted in the MC forum) to create a smartlist with all your MP3s (call it something like 'iPod Tunes') and then include this playlist in your logic for any future smartlists. When you synch do NOT include all the playlsists/smartlists. Initially just do the 'iPod Tune' list .. the first synch will take some time as the iPod is populated with the songs. Afterwards future smartlists will quickly and effortlessly synch.
Initially I did have synching problems very similar to this thread (http://www.ipodlounge.com/forums/showthread.php?s=&threadid=5638) ... that is missing playlists, missing files on my iPod; in the end it was necessary to do a restore onthe iPod.

So I am now set up, running and find the smartlist capability of MC9 its real strength over alternative software.