I'm contemplating upgrading to Windows 7, Home Edition (from Windows 98se,
-- embarrassing isn't it!). Will none, some or most of my Windows software (most of which runs happily on Windows Xp) still run? The fact that (it seems) one requires a Windows Xp emulation (available in Windows 7 Professional) to run some Xp applications (or is it all?), somewhat spooks me.
All should run on 7 Things you might have problems with are older applications, my wife had a cross stitcher thing that we had to abandon. However 7 has a "best fit" utility that will iron out the problems failing that most outside applications will upgrade.
In addition to Chuck's comments, I'd strongly suggest that you upgrade your application software to the latest version at the same time as you upgrade to Windows 7. E.g. if you're running Microsoft Office 97 on Windows 98se, I think you'll struggle indeed to get that to run on Windows 7.
Are you sure you can get Windows 7 drivers for you hardware?
Personally I think you are far better putting the money you spend on W7 towards a new computer.
You will be spending around £100 on Windows7, but running it on really really old hardware, whereas you can buy a whole new computer system unit including Windows 7 for about £250.
I think you are wasting your money putting W7 on a PC that old.