Hi again
You might want to test the hardware basics before your next installation, to make sure you don't lose time to faulty hardware. MemTest86+ can test the memory ---
http://www.memtest.org --- and test whatever hard drive is the right size and in good working condition ---
http://www.tacktech.com/display.cfm?ttid=287
If it doesn't need to be on the Internet, try Windows 98 2nd Edition, if you have it (you mentioned Win98 earlier - if it's '98se' - then you're set). 98se is amazingly compatible with hardware, and has a ton of built-in drivers right there on the CD. The kids games are easy to reinstall, so you might as well start fresh with a clean disk, format using FAT32, and if anyone has a "Security Update CD Febuary 2004" in your neighborhood, borrow it: you'll be as up-to-date with patches as you need to be for a non-Internet-connected Win98se computer needs to be in about 20 minutes. Then, should any of the patches from Feb. 2004 - to mid-2006 become necessary, you can always grab them later.
If it eventually has to venture out on the Internet, it might have enough oomph to run the AVG antivirus program - but you'd probably have to hide it behind a hardware firewall, since a software firewall might be just too much for the system to handle. Since youngsters need to be supervised on the web anyway, one way to go is to leave the older computer cut-off from the Internet, and have any Internet time done on mom and dad's computer, with all the parental guidance right there.
You mention 102 as a temp - I'll assume you are referring to Fahrenheit [since things would be pretty toasted at 102 Celsius] -- that's pretty good for an Amd K6/K6-2/K6-III. Check in the Bios to see if there's a menu with voltages reported, and see if they look within range - system hangs and restarts can sometimes be a symptom of a power supply not doing it's job well enough (can happen after many years of use).
And - just on a personal note: three of my kids' favorites from their Kindergarten/First Grade years were "Arthur's Reading Race", "Stellaluna", & "Sheila Rae the Brave" - these run very well on older Windows 98/Me machines, and are sometimes available for about $5 in the bargain bins, or online (used or new) at places like amazon.com --- Here's Arthur ---
http://www.amazon.com/51291-Arthurs-Reading-Race/dp/B00003IEKI --- here's Stellaluna ---
http://www.amazon.com/gp/product/B0...t_details/002-2276889-2344864?ie=UTF8&seller= --- and, well, it turns out that "Sheila Rae the Brave" is a bit harder to track down, but keep your eyes open for it (sometimes shows up on eBay and such). Wonderful programs.
Best of luck
. . . Gary
[P.S. --- Almost forgot: each of the children's CD titles that I recommended are based on books = grab a paperback edition of the book, and they'll be reading both electronically & the old-fashioned way - curled up & cozy with a paperback]