Are you using win98 or win98 SE??
double check on your usb cable software, maybe it have another program for win98 SE. As I know win98 don't come with the usb driver, you need to download and install it, try the
www.microsoft.com or your phone cable installation CD. You got to install it first, then install the phone cable software. If still not work, you may need to upgrade your windows to XP or try to buy a USB to PS/2 adapter, it may solve your problem.