If you have a Full Retail version of XP (not an OEM version) you can upgrade
overtop of your current setup. Make certain you backup your important data
first. Remember that an upgrade of an OS is a major install and if something
does go wrong you don't want to lose what you need to keep! Do a decent
cleanup of your drive, uninstall your CD burning software, antivirus
software and any third party disk management tools (e.g. Norton System
Works, GoBack etc) as they will not survive the upgrade and will need to be
reinstalled after. If you use packet writing to save files to CD make
certain you finalize your packet formatted CDs as XP might not be able to
read them. If you use Windows 98's Backup tool to save data you'll find that
XP's version won't open .QIC files so you need an alternative backup
program. Once you've upgraded do not be quick to Activate. You have 30 days.
Try XP to see if it is what you want on this system. If you decide you don't
want it you can then easily transfer it.
Turn on the XP Firewall immediately after you finish the upgrade the visit
the Windows Update Site and install the Critical Updates. This is very
important as you do not want to contract the W32.Blaster worm.
Yes you can change your drive from FAT32 to NTFS following the upgrade. But
you must wait until after the upgrade is completed. Go to Start->Help &
Support and do a search for "convert" to learn how to do that.
Here are essential links to info about upgrading
http://www.aumha.org/a/xpupgrad.htm
http://aumha.org/a/ntfs.htm
http://support.microsoft.com/default.aspx?scid=/default.aspx?scid=fh;EN-US;winxpfaq
http://aumha.org/win5/a/parasite.htm
http://www.webtree.ca/windowsxp