not sure but it looks like the issue with wkix32.exe being different than the old console one.
you should add some stuff to your logon.bat.
for windows NT based machines you can just do:
"wkix32 hello"
where as for win9x you need either the line you had or:
"z:\wkix32 z:\hello"
anyway, for win9x you may need to have with wkix32 something like:
start /wait z:\wkix32 z:\hello
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