To restate my previous response: the proper way to use the console-less version of KiXtart 2001 on Windows 9x is by using LMSCRIPT emulation. Although it doesn't make a lot of sense, you can also use it from a batchfile, but you must run it using "START /w KIX32.EXE".
The reason for this is that KIX32 is a true Windows application, and as such runs asynchronously. So unless you use LMSCRIPT emulation, or tell the batchfile to wait until KIX32 completes, the logon API will prematurely think KiXtart is finished and rip out the network connection to the NETLOGON share (which in turn will of course cause an exception in KiXtart).
Regards,
Ruud