I have the exact same problem (excpet my domain controllers are NT4). My win98 computers will run my logon.bat just fine, but when it goes to run the kix script it just stops and closes the dos window.

Here is my logon.bat file:

@ECHO OFF
:checkcitrix
IF EXIST %WINDIR%\SYSTEM32\CHGUSR.EXE GOTO end

:checkkix
ECHO Verifying/Updating Script Software, Please Wait...
IF "%OS%" == "Windows_NT" GOTO WinNT
%windir%\command\XCOPY %0\..\KIX32.EXE %WINDIR%\SYSTEM\ /D /H /I /R /V > NUL
%windir%\command\XCOPY %0\..\KX16.DLL %WINDIR%\SYSTEM\ /D /H /I /R /V > NUL
%windir%\command\XCOPY %0\..\KX32.DLL %WINDIR%\SYSTEM\ /D /H /I /R /V > NUL
%windir%\command\XCOPY %0\..\KX95.DLL %WINDIR%\SYSTEM\ /D /H /I /R /V > NUL
ECHO Running Logon Script...
%windir%\system\kix32.exe %0\..\logon.KIX
GOTO end

:WinNT
XCOPY %0\..\KIX32.EXE %WINDIR%\SYSTEM32\ /D /H /I /R /V > NUL
ECHO Running Logon Script...
%WINDIR%\SYSTEM32\KIX32.EXE %1 %0\..\logon.KIX
GOTO end

:end

It's rather frustrating, my NT machines run fine. Sorry to interupt this thread, but it seems I'm experiencing the same issue.