This might have helped with your problem no.1. However, if you really have decided to go down the XP route, probably the best method is to do a clean install rather than upgrade from ME.
As my current PC came with XP preinstalled, I've never had to do this, but I think there is a method of installing XP which takes care of the whole formatting thing automatically. However, I believe if you decide to upgrade, XP has the ability to keep your files, settings and programmes intact.
Have a search around the Microsoft site for more.
Hope this helps [img]graemlins/thumbsup.gif[/img]