Happy to report that, perhaps the only freeware solution, worked well:
I archived all needed files for a partition bootable to win98, including
long filenames, into a zip file.
I recently completed a successful reinstall of win98, using this
zip file: I formated C:, and used infozip's, unzip32.exe, cwsdpmi.exe
for 32-bit dos operation, and doslfn.com to provide the long filename
API. The restore was done from plain real mode dos.
All files were restored flawlessly, including long filenames and
directories with spaces (e.g., Program Files). Only caution is to
make sure you do not use the 16-bit unzip. The latter gets confused
about spaces. I suspect this combination of tools will work with
alternate lfn programs like starlfn (at least they claim so).