Personally, I'd suggest you get a second hard drive to install Windows XP on, and leave your old hard drive in as a slave drive. While this isn't the most efficient usage of space, I've seen too many people reformat and do fresh installs thinking they had backed
everything up, only to find that they forgot to keep the files for
[insert program data files here. If you're able to install fresh to another drive, you can always get files from the other drive, then, after using your newly reformatted computer for a little while and comfortable knowing that you have
all the relevant data, reformat the old drive.
However, make
sure you know which drive is which, and you don't manage to reformat the wrong drive. [Yes, I've done this on two occasions now. Not fun.. especially when it's someone else's computer.
]. However, if you only have one drive and no desire to get another, follow the other peoples' instructions here. In addition to using the Export feature, you may also want to copy the .pst file (for Outlook) that's within your user profile. (I'm not sure where this is located in Win98SE. Use the Find feature and look for "*.pst").
[Just so we can help you out better, what e-mail program are you using and trying to save the settings of?]
The Favorites, if you haven't found them already, in Win98SE, should be found in C:\WINDOWS\FAVORITES. (If I remember Win98 correctly). Or, it may be in C:\WINDOWS\PROFILES\[LOGIN NAME]\FAVORITES.