Updating windows 98 to second edition
actually Doc Watson, there are some applications out there that DO require Win98 SE (2nd edition) and NOT FE (1st edition).
Adobe Reader 6 is one of them and its setup program will not allow you to install Adobe 6 under a 98fe OS.
In any case, I would not presume the whole W98 FE package was beneficiary of Windows Update.
Third party patches are available to fix this shortcoming in Windows 9x.
I installed an OEM copy of Win98 First Ed / 'Gold'.
You can get by on about 8GB of hard drive space (some would argue less).
The advantages of running XP are fairly obvious-- unless you are married to a favorite application which cannot be upgraded, and you dislike the idea of dual-booting from W98FE and WXPHome-- you can do much more with modern applications.