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Yes it works, but it poops an additional icon into the right lower corner to launch its menu,and may easily make the menus unreadable when a mouse click hits it wrongly. I have some hundreds of fonts on my PC - many of them are incomplete or made of unreadable symbols - e.g. 7-segment digits for various Visual Pinball games. - Is there an easy reset when it messes stuff up? By the way, the main bug that causes "|" instead of "..." seems to be in the "MS Sans Serif" font (apparently the Win98SE default). Selecting it in Theme Font Size Changer brings the flaw back. A work-around for this is a FF extension called Organize Status Bar. You can hide or move status bar icons as you like.
There are various character flaws in KernelEx on Win98SE. E.g. in Firefox 3 the "..." is still replaced by a "|", which looks stupid. A work-around for this is a FF extension called Theme Font Size Changer. Try Arial/Normal and see if the "..." comes back.