Here's another thought - is your hard drive maxed out? Maybe you need to adjust the size of your virtual memory. You know 98 can be upgraded to W2K Pro which is a much more stable OS. You just need a Pentium 133 Mhz processor, 64MB of RAM, and about 2GB of hard drive space. Might be cheaper than a new computer.
It does sound like a resource problem, though. I have a similar problem with my laptop and Compaq had me changing values in the registry and turning alot of display/video settings to bare miniumum, which I found unacceptable. My OS is XP Pro.
Anyway, good luck!
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