Hi pokersk8trshark
You might have some success with an over-the-top reinstallation, if the hardware is still OK. [You could test the hardware, to make sure that you aren't wasting time with software fixes for hardware problems - test the memory (
http://www.memtest.org ), and the harddrive (
http://www.tacktech.com/display.cfm?ttid=287 ) ]
That model originally came with diskette-based diagnostics . . . if you still have them around somewhere, they can test several more components.
Here's a guide for over-the-top reinstallation of Win9x/Me
http://forum.pcmech.com/showthread.php?t=70846
An over-the-top should help rebuild the Registry to a workable state. And it does rather seem that a broken Registry is involved - though whether it's the only problem is a good question, too. Scan for malware as part of your system restoration.
Best of luck
. . . Gary