I copied my old "C:\Program Files\KEDITW" directory from my dying Windows laptop into a bottle "~/Library/Application Support/CrossOver/Bottles/[bottlename]/drive_c/Program Files/KEDITW" and it worked without issues. I then installed the KEDIT for Windows 1.6 Upgrade using the CrossOver Software Installer as Unsupported Software, and it set up the icons in "~/Applications/CrossOver".
Works perfectly without any issues in my default win98 bottle (which also includes IE6) as far as I can see on Mac OS X "Tiger" 10.4.11 using CrossOver Mac 6.2.1.