Yeah, Windows 98 SE is a good operating system, its stable, pretty fast but unfortunately not supported by Microsoft anymore, I guess 98 has lived its live and now there are newer things, not necessarily better, but newer. As in 2000 and XP and the upcoming Vista OS.
I used to regret upgrading to Windows XP, but now I don't. First I upgraded when I had 128 MB of RAM and old accessories like an old lexmark printer from 1998 and a scanner and whatnot, so everything didn't really work correctly... but after a while, and a load of driver searching everything started to work right again. Then the HDD failed, and I ended up purchasing a new computer preinstalled with XP Home.
In terms of bugs and security updates, they are a priority to have, but as long as you stay safe on the web, watch what you download (choose sites with user reviews, or trusted sites like PC World), and preferably use an alternative browser (for activeX reasons), have antivirus software and a firewall...
...and finally, as I saw in this month's issue of PC World, McAfee SiteAdvisor. It's free, ad-free too, and it runs in the toolbar of either Internet Explorer 6/7 or Firefox... it tells you whether the site you are on is "safe" or not, like if it has good downloads (or ad-ware infested downloads) and whatnot.
But I'm starting to get a bit off-topic here, aren't I? On my first computer, like I said before, I ran Windows XP with 128 MB of RAM and a 800MHz AMD processor (don't ask), but it does run much better with my 512MB RAM and 1.7GHz Intel... lol :wink: