Rowski, My personal choice is Win98SE for a windows OS. For my uses, it is a lot more stable than ME. I do a lot of install and uninstall of quite a few differant programs. ME gets flakey with that and crashes more frequently than I care to deal with, although, 98SE also does similar things! My spouse has used her ME (same identical system, except she's running an 850Mhz cpu, whereas I'm running a 1.3 ghz cpu.) for the past six months without a crash, or problem of any sort. She doesn't overclock hers, and I do overclock mine periodically....which tends to cause problems here and there. I've had three memory modules (total of 1152mbs of memory) take a dump on me for various reasons, partially overclocking, partially bad chips, and partially who knows.
WINME can be installed and have a good load (personal experience) IF you install a new load on a clean hard drive. Do not do the upgrade route, as that will cause some very flakey functional use. If you ever decide to dump it and revert to WIN98SE for example, fdisk, format and fdisk /mbr are highly recommended. Win Me likes to 'hide' info in the master boot record that will cause problems for other loads.
fdisk in itself won't necessarily rewrite the master boot record, hence the reasoning behind the fdisk /mbr, which incidently can be done on a fully loaded drive without messing up anything loaded on the drive. (NOTE: IF you have an antivirus software loaded, such as NAV, it MAY cause a problem, as NAV writes to the Master Boot Record also)
No WinME and Win2000 are differant. Win2000 is a standalone home pc variant of WIN NT ... (the network version), and is more closely related to it, ME shares much of the 98 OS platform, with a few new items thrown in. It is sort of a bridge between the 98 platform and XP, sharing some of each. (personal opinion on that observation)