I use this program. To delete IE you need to go to Start, then in the programs list look for 98lite, in the three or four menus there's one that says Windows Setup, click on it, this is the same window as the one in Control Panel. You will see many more items that can be removed.
I'm doing this from memory, so I hope I've got it right.
By the way, certain elements of Windows require a version of IE to be install to work, for instance MS Office plus some other programs, so you may find its better to leave it installed. I have remove a lot of rubbish, about 60MB of it and have found Windows 98 very stable. But its not my preferred Operating system for the Internet because its still venerable.