Upgrade OS Win98se

The option of upgrading to Win2K Pro would be the choice I would choose,because it is a stable operating system and it is supported by more hardware vendors.
Check the Microsoft HCL,before proceding with upgrade
Logitech mouse does work with W2K Pro with updateded drivers,Load IE6 with all updates

Memory, speed and hdd space are all things you'll want to consider.

If you have a P3 - 450 MHz machine with 128 MB of RAM minimum, then upgrade to Windows 2000. I would not consider an upgrade to WinXP if your machine is only 450 MHz.

If you have a faster processor and 256 MB of RAM or more, then upgrade to Windows XP.

WIndows 2000 is more work-oriented than personal-use (games) oriented. What are your main tasks with this computer?

From the hardware listed, there are no upgrade problems with either W2K, or XP.

Check your video card
sound card,
printer
and other periphials for support.

Then, the choice depends on what you use the PC for.
If it is used only for Office tasks, and research sysle web browsing, W2K may be the correct choice.
However, if you use the PC for games, or multi-media, I would jump straight to XP.

Another thing to consider, is how long before you upgrade or replace the system?
I recommend installing any hardware upgrades prior to upgrading the OS.

If you plan to replace the system in 2 years, you might want to go with XP, as it will become increasing harder to purchase a PC with W2K installed.

Chas