Adding 2 XP boxes / W98 Peer-to-Peer

There is a small W98 peer-to-peer Network with Windows 98 server with W98 & W95 workstations. Owner purchased 2 Windows XP Home boxes and wants to add them into peer-to-peer network. The network is setup with a 8 port hub and does have available ports on the hub. Can the 2 new XP Home version boxes be added to network and will the XP home version boxes be able to access the W98 workstations, networked printers, etc and visa-versa? Is there any known issues with this type of setup? Would upgrading the server from W98 to Windows 2000 be a good move and what pitfalls are their upgrading the server to W2K in this enviroment?