The icon on the desktop is likely to be a shortcut, you already have the path (that you gave above) to show where it is in explorer. However, you don't have to go looking for it, you can boot win98 into safe mode (usually pressing F8 key at start-up), but see win98 help for more info.
This only loads essential windows elements and it won't be pretty 800x600 and 16 color as it is not loading drivers, etc. Once into windows, run avast scan, you may need to use the start programs to start avast then run the scan.