Update and Upgrade ?

This computer that I’m presently trying to update and upgrade is not allowing me to. Initially I was asked to upgrade this compaq from ME to XP. Constantly stalls while gathering information. With sever sessions with tech support the suggested doing a complete format and install of XP. But I found some incompatable hardware possibly. So I decided against. Next I decided to just update ME with Critical updates but again the system stalls. Then I tried to upgrade from IE 5.5 to 6.0 and again system fails to update. Can someone please help?