Microsoft is still investigating this problem, however here are some steps that have resolved this issue for other Windows 98 customers:

Suggestion 1

1. Click on Start, Run and type "REGSVR32 DISPEX.DLL" (w/o the quotes). You should see a popup message that this process succeeded.
2. Connect to the Windows Update site and see if the download hangs.

Suggestion 2

Microsoft has found that one version of the DISPEX.DLL file (5.6.0.8515) can cause this problem. This version is installed from the Windows Script 5.6 download on the MSDN web site. If you have Version 5.6.0.8515 of the DISPEX.DLL file, then you need to try replacing it with the version of the file that comes with IE 6 SP1 (Version 5.6.0.6626).

Follow these steps to see which version of the file you have:

1. Open Windows Explorer and navigate to this folder:

C:\Windows\System

2. Find the file DISPEX.DLL in that folder, right-click on it and select Properties from the popup menu.
3. Click on the Version tab to see the Version Number of the file.

If you need to replace the file then follow these steps:

1. Open Windows Explorer and navigate to this folder:

C:\Windows\Windows Update Setup Files

This folder is created when you install IE 6 SP1, so if you don't have this folder then re-install IE 6 SP1 to get it.

2. Within the folder, find this file:

Scren56.cab

3. Double-click on this file to view it's contents. You may need to install WinZip to view the contents of the file.
4. Extract the file DISPEX.DLL and replace your current version of this file with the version you extracted.
5. Click on Start, Run and type "REGSVR32 DISPEX.DLL" (w/o the quotes). You should see a popup message that this process succeeded.
6. Connect to the Windows Update site and see if the download hangs.

Suggestion 3

1. Click on the following link to download a file called MCREPAIR.EXE:

http://download.microsoft.com/downlo...s/mcrepair.exe

Please save this file to your Desktop.

2. Open Windows Explorer.
3. Create a temporary backup directory called C:\Backup.
4. Now navigate to the C:\Windows\System directory.
5. Copy these files to the C:\Backup directory:

Asycfilt.dll
Oleaut32.dll
Olepro32.dll
Stdole2.tlb

6. Verify that copies of these files are in the C:\Backup folder.
7. Return to your Desktop and double-click on the file MCREPAIR.EXE.
8. Click Yes to any messages that appear. Once the process is complete, you will be prompted to reboot your PC.
9. After your system boots, try the Windows Update site again and if the download still hangs and/or you encounter problems with other applications on your PC then you can use the following steps to restore your original files:

1. Open Windows Explorer.
2. Navigate to the C:\Backup folder.
3. Copy the four files to this folder:

C:\Windows\System

4. Click the "Yes To All" button when the popup message appears asking if you want to overwrite the existing files.
5. Now re-boot your PC.

some other things to try.