How to Copy Files From Windows 98 to Windows XP
Upgrading your operating system from Windows 98 to Windows XP should be a relatively simple process. However, there are steps to take if you don't want to lose data from your hard drive. You can either create copies of your files on disc, or you can choose to use a Windows XP Upgrade version instead of a full version. Either way, it is possible to copy files from Windows 98 to Windows XP.
Instructions
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Copy Files From Windows 98 to Windows XP
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Select all of the files you want to copy and place them in a separate folder. This will make it easier to find the files when you are ready to copy them.
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Transfer that folder to a zip disc or queue it to be written to a CD. Make sure that the folder contains less than 700 megabytes of information or it will not fit on one disc. If you have more, use additional disc/folder combinations to get everything.
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Paste your files into Windows XP once they've transferred to disc. This is, by far, the easiest method you can use to copy files to Windows XP.
Copy Files Using the File Settings and Transfer Wizard
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Start the File Settings and Transfer Wizard within Windows 98 or from the Windows XP installation disc.
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Choose the transfer method you wish to use. You may use a direct cable if you're loading windows XP on another computer. You can also choose to transfer files over a home or office network. You may choose "Other" to use a zip-disc method.
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Choose specific items to transfer from your hard drive. A menu will appear that will permit you to browse the files on your system and choose the ones you want to copy.
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Click "Next" when prompted to do so. You will be lead to either identify programs that Windows XP is already familiar with or you will simply begin the copy procedure.
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Exit the Wizard once you've finished copying your files. You may then continue to install Windows XP.
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Tips & Warnings
Partition your hard drive into to separate parts, so that you can have both operating systems saved on the drive. You can only have one running at a time and you will have to choose which to boot. This is a fairly advanced way of saving files, so be very careful whenever you attempt to partition a hard drive.
This protects you if something goes wrong during the copy process.