If the 98SE is working well, take the advice from PCA and myself, don't change it until you by a completely new computer.
The only realistic alternative is XP, but that can be very troublesome to get working on an existing system and is extremely difficult at times if you don't have fairly advanced knowledge. The problem is compatibility, it may not accept much of your existing hardware or software and could involve you in huge expense.
The operating system is on your C drive, and to back it up it's best to use an imaging program like Ghost or Drive Image. Some recent magazines have recently given away Drive Image versions which suit 98SE, so keep your eyes skinned for one of those. Version 4 will write to CD or a hard drive partition.
Don't just right click and format your C drive, you would instantly lose your Windows!
Formatting should only be done before installing a new Windows.
Mad Boy follow the excellent advise from JP, If you want to find your operating system to back up on your computer then double click "My Computer" and look at the letter on your hard disk. Its more than likely "C"
You were not there when I started banging these keys :o) Only popped in to see whats happening but I've seen your post (well I've glanced at your rendition of war and piece) I'll have a proper look in the morning....
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