The first computer I had 98se on was a p166 32 megs of ram use it for about 4 yrs.
I wouldn't put xp on it if i were you .
As for upgrading to 98SE all you need is a 98SE disk and from the boot disk run setup making sure to install it in the c:\windows folder,so that it over writes the win98 ,[not the c:\windows000 folder that it might choose] and install it over the 98 version .I have done this on numerisous ocations with 95 and 98 .
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