Hmmm, since Win 98SE does not have the Restore feature that was introduced in Windows ME and continued in later versions of Windows and does not store Restore Points, how did you "recover to previous restore point"?
Try this to fix OE. Go to Control Panel and select Add/Remove Programs. Find Microsoft Internet Explorer and Internet Tools, select it, and click the Add/Remove button. You shoud see a panel with three options. Select the Repair Internet Explorer option and proceed. This repair procedure includes OE.