I tried the last suggestion, but unfortunately we had some Windows 95 machines mixed in with the batch, too so we had to actually put a netrap.dll and a netrap32.dll file in the same path with the Kix32.exe file. This worked ok except for the Windows 98 machines. Even if they had their own netrap and netrap32.dll files, they would use the ones in the path. We finally found the resolution for this. Simple register the netrap.dll and netrap32.dll file in the registry (we merely found a 98 machine that was working and exported the keys) and log out and when you log back in, Voila! the problem is gone!

Later!