Eskimo, I think ME is better, it's a bit faster (much faster startup).
However, from gaming purpose, there isn't much difference between 98 or ME. If you have 98, use it, if you have ME, use it. It is more about taste here.
However, before you can use any of them, you must get the computer to work proparly, the porblem is most likely in the settings for the DVD.
The DVD should be placed on SECONDARY IDE, and be set as SECONDARY MASTER (it is all alone at that IDE and thus it MUST be MASTER)
If it is set as SECONDARY SLAVE and alone on the IDE things will F*** up.
Check inside the computer, hard to help you over internet like this as I can't see inside your computer.