I think overall XP is better technologically. But yes performance will be better in 98 because it is way lighter and not running on the NT kernel. 98 was a sweet OS for its time....especially 98SE. That s*** was fast and ran on underpowered systems like a dream. I honestly wish however that MS started up a 98SE development project to add new features like XP has but without the bloat...that would really really rock in terms of a gaming OS. But peronally I would not want to go back to 98se because XP does everything for me.