MSDE not connecting in Windows98

Question

I have made windows application using .NET 2.0 BETA 2.0(VC#) with MSDE(Release A) as database tool. Now when I install my application on Windows 2000,XP,2003, it works well. But When I install on Windows 98, application is not connecting to database..
On command prompt, using OSQL, I can list database, table and I can connect to database. But When I try to connect throught application using connection string then it does not work.
Please help me sorting out this problem.
Thanks
1) Connection String is same in all O.S. version and it is SQL Auth.
2) I wrote following things in setup.ini of MSDE
[OPTIONS]
SAPWD="NILESH"
INSTANCENAME="NILESH"
SECURITYMODE=SQL
3) I use MDAC 2.8