System problem reading memory

After recently upgrading to Win98 and FAT-32, I wanted to remove several old software programs. Eventhough I have 255 MB Ram, I’m prompted that I do not have enough memory to remove software. This also prevents me from running scandisk, reinstalling windows, etc. I have been told it is not reading the “conventional” memory, but no one seems to be able to tell me how to correct it. Please advise if you have any suggestions. I really need to correct this problem. Thank you.