Yes. It wont delete any data and setting.
But you shuld be very carefull. dont select format and
install....select only upgrade...
Take care ....and read care full all the instraction
given by the computer during upgrade
Upgrading to Windows XP
This section describes an upgrade to Windows XP from
Microsoft Windows 98, Microsoft Windows Millennium
Edition (Me), and Microsoft Windows 2000 Professional.
NOTE: Before you begin the upgrade process, obtain and
install the latest BIOS upgrade for your computer from
the computer's manufacturer. If you update the BIOS after
you upgrade the computer, you may have to reinstall
Windows XP to take advantage of features such as Advanced
Configuration and Power Interface (ACPI) support in the
BIOS. If possible, update the firmware in all of your
hardware devices before you start the upgrade.
Also, you may want to disconnect from the Internet during
the installation. Disconnecting from the Internet during
the installation helps protect you from malicious users.
You may also want to enable the firewall in Internet
Explorer. For more information, see the "Enable or
disable Internet Connection Firewall" topic in Windows XP
Help.
For additional information about how to prepare Windows
98 or Windows Millennium Edition for an upgrade to
Windows XP, click the following article number to view
the article in the Microsoft Knowledge Base:
316639 How to Prepare Windows 98 or Windows Me to Upgrade
to Windows XP
To begin the upgrade, start your computer, and then
insert the Windows XP Home Edition CD-ROM into your CD-
ROM drive.
If Windows automatically detects the CD-ROM, click
Install Windows to start the Windows XP Setup Wizard. If
Windows does not automatically detect the CD-ROM, click
Start, and then click Run. Type CD-ROM drive
letter:\setup.exe, and then press ENTER to start the
Windows XP Setup Wizard.
When you are prompted to choose an installation type,
choose Upgrade (the default setting), and then click Next.
Follow the instructions on the screen to complete the
upgrade.
