It works for me with both ActiveState 522 and 613 (that's 5.005_3 and 5.6, for those of you keeping score) on NT. My test program was:

my @files = grep /\s/, <*>;
foreach my $file (@files) {
    print ">>$file<<\n";
}
[download]

On both versions, that caught long filenames successfully. On a Linux box with GNU bash, version 1.14.7(1) and Perl 5.005_3, it works as well.

(since the Win98 box has become a Linux Distribution Installer Testbed, I can't report on that. :)