Right click on My Computer
select Properties
Click on the Performance tab
click on the Graphics button.
drop the Hardware accelleration down a notch or two.

Kernel errors are generally video related. Check for new video drivers. IE
and OE are hard on video.

A. See
Dealing with Unwanted Spyware, Parasites, Toolbars and Search Engines
http://mvps.org/winhelp2002/unwanted.htm

B. You may need new video drivers.  Check the site for your video board
manufacturer.  Meanwhile you can do the following:
1.  Use the default mouse pointers.
2.  Turn down your color depth.  (Right click the desktop and choose
Properties | Appearance | Settings)  Some people find that increasing color
depth helps.
3.  Turn down your graphics hardware acceleration.  (For Win 98, Start |
Settings | Control Panel | System | Performance | Graphics button)  You will
see little, if any, performance degradation.
4.  Turn off your desktop wallpaper.

If these make the problem go away you need new video drivers.

If you have an ATI video board, try adding these lines to System.ini

[display]
DevBMP=0      <--- That's a zero