That myth's been going around a lot. Win98 doesn't make very efficient use of memory above 128 MB, but it certainly doesn't ignore it.
Unless you put a cap on the vcache settings, Win9x won't boot properly with more than 512MB, but once you specify a limit, you can use huge amounts of memory with it. Not that it's very beneficial to have a gig of RAM in 98, but it's possible.
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Dave Farquhar
Author, <i>Optimizing Windows for Games, Graphics and Multimedia</i> (O'Reilly)
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