Oops forgot something. That --winver switch only works on older versions of wine or on winex. Recent versions of wine use the wine config file.
For example the following to use win98 for all apps
[Version] ; Windows version to imitate (win95,win98,winme,nt351,nt40,win2k,winxp,win20,wi n30,win31)" }, "Windows" = "win98
or [AppDefaults\\app.exe\\version] for a single app.