Qs: Will I be treading on any toes on this front by cutting back the disk space to the first 2GB in this way? Or will Win98, next time it starts up, simply do its usual swap thing in the space it then finds available? If there would be problems, what should be done to avoid them? <<<<
Far as I know, both swap and hibernate use regular files and shouldn't be affected. It's possible the system was set up to have a separate hibernate partition, but then you'll see that during the resize process.
-- GT