I even managed to get my Windows 98 box on the network again, and this also seems to work for me from current CVS. I'm really not sure what I am missing....
I guess <wink/> that I fixed it on Modules/posixmodule.c rev 2.310.
I think you did (and thanks!): test_unicode_file passes for me today on my Win98SE box too.
Speaking of which, it wouldn't have been possible for me to test this if I hadn't "rehabilitated" the VC6 project files over the weekend: VC7 can't be installed on a Win9x box. I sure hope I was the only one routinely building Python on a Win9x box, though <wink>.