Hard way or easy way?
Hard - Name all of the errors and we'll fix each one (try to anyway).
To save time. Goto Start > Run > type: SFC > click ok. This will check your files to see if there is a problem.
Norton utilities maybe the problem. Stlealing alot of your RAM.
Go to Start > Type: MSCONFIG > click ok > Startup > Take the tick out of everthing apart from "Explorer" and "systray" > Click ok and reboot
Easy - Format the hard drive to give you a fresh install of windows 98.
You memory problem maybe due to the fact that you have shared graphics. Your graphics are shared with your memory. 32 MB is for graphics an 480MB is for RAM. Not really problem...
Use windows scandisk and defragmenter.
In scandisc select "Thorough" then scan.
To run these
Scandisc - Start > Run > Type: scandisc > clcik ok
Defrag - Start > Run > Type: Defrag > Clcik ok
See it helps.