If an 80 year old owner of a company starts a retirement plan in 1998, he presumably would have to receive a MRD for the 1998 year. However, his account balance under the plan as of 12/31/97 would be zero which means he doesn't have to take a distribution for the 1998 tax year.

If his 12/31/98 account balance is greater than zero, he would have to take a MRD for the 1999 tax year, but when is his required beginning date, 12/31/99 or 4/1/00? I didn't see this addressed in the 401(a)(9) regs, but maybe I missed it.........

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I haven't run into this before, but I believe that the 1999 MRD would have to be taken by 12/31/99. The delay until the following April 1st applies only to the year the participant reaches 70½. However, this is just my opinion, without having researched the issue.

I don't think the regs address this issue.
I have always figured it this way:
distribution date is 12/31/xx every year, and not worried about the 4/1 date the first year. the 4/1 date simply gives you extra time the first year. There is no reason you can't pay the ee before that date. In fact, I have seen a write up suggesting paying him out by 12/31 of the first year, simply for tax purposes (ee only gets one distribution, instead of 2 in the first year)
in your example, it is a moot point, since ee has no balance the first year.