Consider your existing hardware drivers.
If you have to replace $2,000 worth of hardware to run XP, then you might
consider whether the upgrade is worth it for you. The two critical
items are your soundcard and midi interface. Before you purchase an
upgrade, make a list of your hardware that requires computer drivers and
see if they are win 2000/XP compatible. If they do not specifically
say they are compatible, chances are they will not work on XP. Often
you can get away with using Win2000 drivers on the XP OS, but that is not
true with win98/ME drivers. So check out your manufacturers websites
and look for driver updates. If the updates are still "in development"
you should consider waiting.
Dual Booting. If you have
lots of stuff that only works in win98se then you might consider the dual
boot installation. Here you have the choice at bootup to run Win98se
or Win XP. To do this, you need to install XP in a different
partition than 98se. So if you boot 98 on your C:\ drive,
you might boot XP on your D:\ drive. I advise creating a "new installation"
of XP and reinstalling all your applications on the new partition.
You're going to need a lot of disk space to do it this way, as your applications
will now be installed twice on your machine, and it takes more time, but
you'll be starting off clean and XP won't mess with your old win98 applications.
The Wave of the future? There
is no doubt in my mind that XP is a hit. I predict it will rapidly
replace W98se as the OS of choice for musicians and graphic artists.
So if you are serious about staying contemporary with your system, its not
a matter of "if" you will upgrade, but when you will take the plunge.
With a bit of advance planning on your part the transition will be painless
and awesome.