Why should you? I would say that you are under no pressure to upgrade, especially if you are running Win98SE. I would especially wait until the first patch (or in MS terms, Service Pack) is out to kill a few of the 20,000 or so bugs in the code. Unless you have a great need, such as Firewire support, I see no need to upgrade.
I installed WinMe on one of my machines at home and haven't seen any real improvement over Win98SE. WinMe seems to be just a bloated version of Win98 that is slightly slower, and without any noticable stability difference. IMHO, stick with Win98.
If you want to run WinME, it's true that it's better on a fresh install (formatted disk). But many prefer Win98SE over WinME - Win98SE is faster in many applications and sometimes more stable. A disadvantage to Win98SE is that the boot time is longer.
Rob
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