There are a few ways. It all depends on if you want to keep your current information and just upgrade or do a complete fresh install. If your wanting to just upgrade , put the disc in while loaded in windows 98 and it will then ask if you want to upgrade or do a clean install(clean install will format your hard drive and install a fresh copy leaving nothing behind). If you dont want to keep anything then I would reccomend doing a fresh install, either way before you upgrade or do a fresh install be sure you have drivers for your hardware that are compatible with xp.
I can't stress enough the importance of XP compatible drivers. when you upgrade. Get drivers for every piece of hardware on your Pc. Motherboard,Video Card, Modem, Network Card, Sound Card, etc...
Alos have you checked wether your Pc meets the minimums system requirements for XP?
Also As electronicsfreak said: Do you want a clean install, or do you just want to upgrader and keep all your files and programs intact? make that decision and post back.
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Ignorance is not necessarily Bliss, case in point:
Unknown has caused an Unknown Error on Unknown and must be shutdown to prevent damage to Unknown.
Definitely agree that machoosh1 should make sure his computer specs especially memory and hard drive space meet at least minimum standards for Windows XP. Also, whenever possible, I think it is always best to do a clean install instead of an upgrade. In an upgrade...if you've already got any software issues installing a new OS can create worse issues.
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