You can simulate a Win32 [32-bit] environment by using DOSLFN [free, open source]:
http://www.geocities.com/jadoxa/doslfn/Then u can use CABARC, PKUNZIP, or any other unarchiving tool that otherwise works only from within Windows.
Just make sure your tool is capable of handling LFNs.
Example: add this line to your BATch file used to extract all files to your HD:
DOSLFN t+ w+ le
Then add a line for your unzipping tool.
If I may, I'd like to suggest using 7ZA.EXE, part of 7-zip, or as separate DOS console zipping/unzipping tool [free GPL]:
7-Zip v4.18 Beta 32-bit ZIPping/unZIPping integrated Windows Explorer shell
extension + DOS box command line tool for Windows 9x/NT4/2000/ME/XP/2003
supports most popular compression formats: ZIP, 7Z, RAR, CAB, ARJ, GZIP, BZ2,
TAR, CPIO + RPM, highest ZIP compression ratio (2-10% better than most other
ZIPpers) otherwise attainable only by ACE/CAB/RAR formats, highly customizable
(free GPL):
http://www.7-zip.org/
7-Zip Shell extension + DOS box/console tool [1.02 KB]:
http://prdownloads.sourceforge.net/sevenzip/7z418b.exe
7-Zip DOS box tool [320 KB]:
http://prdownloads.sourceforge.net/sevenzip/7za417b.zip7z format is 1 of the best available, especially for large archives.
I use 7-zip to compress 98SE2ME.

And u don't need to put these tools [+ batch file] on a floppy, they are small enuf to fit on the same CD where your 98SE archive resides.
Just make sure to select bootable CD when u burn it.
One last thing:
depending on which burning tool u're using, u may need the
boot.bin file. U can probably find it in most [if not all] of these guides:
http://www.msfn.org/articles.php?action=cat&acid=1Hope this helps.