Yes, 98 alternator is in same location as the 95.
"Where is the voltage regulator located"
On the alternator. Check out Autozone's site for location of the VR on the alternator.
"the problem is with the alternator or the voltage regulator?"
For such a big pain to get to, most would just replace the entire alternator (unless, it looks brand spanking new). If you are getting high voltages, chances are it is the VR. If you are getting low voltages, chances are it is the alternator. Bear in mind, could just be the wirng issue.
"Also, should i stop driving it altogether?" If it is the alternator not charging enough, I think you can go for 70 miles or so if you drive without lights (radio, a/c, anything which requires load).
Edit. VR location (square? just below the regulator terminal). I tried, a few months ago, (just for the heck of it) to remove the VR without taking out the alternator. No go on that. Got my hand and screwdriver in place but not enough leverage to turn the screws to remove the VR.
http://www.autozone.com/servlet/UiBroker?ForwardPage=/az/cds/en_us/0900823d/80/1b/c2/fd/0900823d801bc2fd.jsp
Wiring issue.
http://www.contour.org/ubbthreads/showflat.php?Cat=&Board=trouble&Number=1075508&Forum=trouble&Words=alternator&Match=Entire%20Phrase&Searchpage=2&Limit=25&Old=3months&Main=1074524&Search=true#Post1075508
