I have Win98SE running in VMware Player 6. I enabled the sound options in the VM, set the correct host device, installed the Win98 SoundBlaser PCI driver recommended for VMware, ...
The MB sound has no effect on what the VM Guest will use. I know Virtual PC 2007 emualtes and old sound card that might work with Windows 98. From a quick google I see posts that metion VMWare Server ...