<p>We're looking at upgrading from Visual Studio 2005 to Visual Studio 2008. I discovered the following disturbing comment:</p>

<p><a href="http://msdn.microsoft.com/en-us/library/6sehtctf.aspx" rel="noreferrer">http://msdn.microsoft.com/en-us/library/6sehtctf.aspx</a></p>

<p>"Beginning with Visual C++ 2008, Visual C++ does not support targeting Windows 95, Windows 98, Windows ME, or Windows NT."</p>

<p>Does this mean that if we rebuild our products with visual C++ 2008, they will stop working on Windows 98 machines? It sounds like it, but I have trouble believing they'd make that big a change.</p>

<p>Thanks for your help.</p>

according to the following link, windows 98 is not supported by .NET 3.5 so I would imagine that is what they mean. You can still do .NET 2.0 and lower development, but if you use the 3.5 libraries, Windows 98 is not supported.
.NET 3.5 information