Vendor-defined hostid is documented in the FLEXlm Reference Manual. That is correct. Yes, this is a known issue with Windows 98. Simply, reinstall the latest Dallas dongle device driver for MS Windows 98. These drivers are available to you by your software vendor.
Dongles are parallel devices.
You should attach dongle to the Parallel port only. We are using uncounted license for the software, node-locked to a dongle on new Toshiba laptops. The software work fine on Windows 98, but fails under Windows 2000. I have installed same drives on both systems. This is due to the incorrect drivers.