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Windows XP Home is the same thing as XP Pro. The only difference really, is that you can join a domain with XP pro, You can also edit some of the security better than you an with XP Home.
Windows 98 is far less stable, and far less secure than what the NT (windows 2000, XP) line of OS's are.
As far as a good linux distro go's, I've had a pretty easy time with Suse, Redhat 9.0 and Gentoo. All were easy to install and configure for me.
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i prefer redhat, but it is purely preference they are all about the same, but it is up you do make it secure, it doesn't come bullet proof, at least as far as i know.