Sometimes the last resort is to format and reinstall the OS. You may not like AOL, but your better get your a$$ on the phone and call support.
Now did this computer already have AOL on it, that your friend was using, and then you went to add another AOL account? Before AOL dials out, it has to recognize your modem first, did it do this?
<font color=red>They adviced me to find and delete the file called global.org because it might have been corrupted and AOL software creates one every time it starts, but that didn't work either.</font color=red>
If you can't reinstall AOL, and it freezes, it sounds like something is corrupted. Have you tried uninstall AOL and reinstalling it, if you have two accounts, save the Favorites, and uninstall that one too. If AOL still doesn't install, there must be some files hanging around and you'll have to find them. You can try a different modem, try what AOL support says, try reinstalling the OS, if all that doesn't work, I would say a format would be in order.
Are you saying you just reinstalled win98, after you post this? Maybe NetZero is interfering. If it was me, if I couldn't figure it out I would format and reinstall the OS, then the drivers, then straight to AOL. If it still didn't work I would look at the hardware and the set up. I'm sorry I can't be much more help then that and I hope you get it figured out soon.