Problem creating Win98 shared folder on Win2000 Domain

Environment:
Server/Domain: Win2000 Server SP4 with AD as DC
Desktop/Client: Windows 98 (not SE) with all Windows Updates, also has
Directory Services Client and WMI v1.5 addons. Client logs into domain and
uses domain for share permissions. Has MSOFfice 2000 Small Business, with
updates. Uses Outlook Express as primary email client app.

When I try to create a shared folder, I get as far as browsing for the
groups and users (I gather it would be attempting to retrieve info from the
DC at this point) and I get the following error message:

"Either there is no default messaging client or the current mail client
cannot fulfill the messaging request. Please run Microsoft Outlook and set
it as the default mail client."

I have tried to set the primary/default mail client as Outlook and as
Outlook Express with the same results.

Is it that I need to be on SECOND EDITION? Other ideas?

Thanks in advance.
Don