Hw 98 22 cal for squirrel hunting and smaller pest, or something else?

It would do fine. You could save a little weight and a lot of cash by going with an HW95 instead. The adjustable cheek on the 98 still doesn't go high enough to be just right. So IMO it's not worth the cost difference for the stock. But certainly nothing wrong with it, should be a fine shooting gun. 

I prefer .177 for squirrel hunting with spring guns, and especially in HWs. I've had a bunch of turds as far as accuracy in .22, but other folks seem to have got lucky with them. It's not worth the dice roll to me for no real advantage over the smaller caliber.


 
When using your .177's, do you go for head shots only, or can a broadside shot work with .177 caliber? This question is in reference to Thumper's above post on squirrels.

Depends on FPE. I routinely dispatch squirrels at 45 yards in vitals. Often, I aim for heart shots. I drop them quickly, but I use mostly my sig asp which gives near to 21FPE at the muzzle. When I am not using that one, I grab my diana which is slightly under 20FPE at muzzle in .22.