what's the best?

Here is the minimum requirement for the following Operating Systems
Operating system: Windows 2000, Windows XP
CPU speed: Intel? Pentium? PIII 500 MHz
System memory (RAM): 128MB
200MB hard-disk space
3D graphics card: 3D-capable video card with 16MB VRAM
1024x768, 32-bit true color screen
Network speed: 128 kbps ("Broadband/Cable Internet")

Well, per the Windows XP Home edition upgrade page, your system just barely meets the minimum requirements.

"PC with 300 megahertz (MHz) or higher processor clock speed recommended; 233-MHz minimum required; Intel Pentium/Celeron family, AMD K6/Athlon/Duron family, or compatible processor recommended

128 megabytes (MB) of RAM or higher recommended (64 MB minimum supported; may limit performance and some features)

1.5 gigabyte (GB) of available hard disk space.

Super VGA (800 ? 600) or higher resolution video adapter and monitor"

That said, I don't even install W98 on systems this slow and old.
On 233 MMX system, Windows 98 runs about 10% slower than Windows 95.

I always look at the minimum system requirements for software, and double them.
That way, you have a system that will function with reasonable performance.

Aside from slow performance, if you install XP, you will have problems with device drivers and application software.

So, stick with 98.
When you can afford new hardware, then step up to XP.

Chas

No you won't benefit from puting XP on this system from experience you need at least 256+ of ram and a 533 pentium or celeron even that is cutting it fine, i toss anything now under 433mhz
to the kids and say destroy.

Chas has given you the best answer here and reasons why not to migrate to XP on this system.

The most likely scenario will be that you have a lot of unsupported Hardware which will have to be replaced before XP will run properly.

By the time you finish replacing all the incompatible hardware you'll most likely have spent a good portion of the money required to buy a new machine that is XP compatible.

If this is a second machine be bold and install Ubuntu on it you'll be surprised at the performance difference. But if it is a primary unit stick to Windows 95/98 I would only be considering the 98 option if you have USB devices that you need to use.

Col

Man I wouldn't put Xp on a 233mhz processor on a bet.

If it is a PIII!

Put in a 20 gig hard drive and 128 meg of ram and put windows 2000 on it.

Otherwise stay with win98.
Lee