Not sure about the pic problem, but I'm on W98SE too and highly recommend that you try Media Player Classic (MPC) and the K-Lite Codec Pack.
Firstly, uninstall Realplayer, Quicktime and WMP (though leaving WMP on the system does no harm). Also uninstall any codecs/packs you may have installed previously.
Media Player Classic click here
Click on the green download link and scroll down - MPC 126.96.36.199 is the one you want.
K-Lite Codec Pack
Download via the left-hand menu, and get the latest FULL version (2.71)
With MPC, you can now toggle play/pause with a single click, toggle full screen on/off with a double click and use the mouse wheel (if you have one) for volume.
Hope this is of interest.