Go with ME.
Well, I used to use 98 SE exclusively. Heard too many bad things about ME and 2000. However, the computer that used that OS completely pooped out on me (not because of 98 SE though) so I got a new P4 1.7 with 256 Ram and an Nvidea GeForce2 GTS (32mb) machine from Dell. It uses Win. ME. To my surprise the OS is almost exactly like 98 SE and more stable...so far.
All the games that worked on 98 SE work just as well on ME. There are still errors in ME but they aren't major errors that SE had(blue screens and such). I guess when people review OS's they tend to point out all the bad things about it more than the upgrades (better safe than sorry I guess). I would buy the newer ME for its greater stability and newer options, and you will feel right at home if you have used SE b4. Also, ME is supposed to have the widest range of game support out of all Win. and you should be with the times as far as your OS.
I thought I was maybe going to get a Granny's Version of 98 but its not like that. The default settings (at Win. ME Setup) are just supposed to make it easier to find your way around menus and such and use less space. But this is easily changed to look and act exactly like 98 SE. Just be sure to go to Windows Update Site b4 defragging!! There are some preinstalled versions of ME that have a defrag bug but is easily patched at the update site and its only like 40 kb dload.
In all I am happy with it and I am a hardcore gamer and designer (art design not game design)
If I think of any other pionts I WILL post them here.
(oh yeah, remember that I haven't had the OS for very long yet but I was having problems in 98SE almost right away, so that's a good sign for ME)
lates