Have a read of this courtesy of MikeM.
Joan

Yes. Win Me can be upgrade to XP, both Home & Pro although it is advisable
to
first run the XP Upgrade Advisor to check what applications may first have
to
be uninstalled and then either reinstalled or even replaced following the
upgrade.

The XP Upgrade Advisor (UpgAdv.exe) can be downloaded from
http://www.microsoft.com/windowsxp/home/howtobuy/upgrading/advisor.asp but
note that this is a large program being around 32MB is size.  If you only
have
a dial-up connection it might be worth looking for a magazine that has
included the Upgrade Advisor on their cover CD. The advisor will give you
a
clue as to any XP drivers required that aren't on the XP CD and programs
for
which you will have to obtain updates.  Some applications will have to be
uninstalled prior to upgrading after which they can often be reinstalled
although in some cases the application will first have to be upgraded to
an XP
compatible version.  The Upgrade Advisor is also included on the XP CD.

For a more extensive discussion of upgrading see Gary Woodruff's article
at
http://www.aumha.org/win5/a/xpupgrad.htm
--
Mike Maltby MS-MVP
mcmaltby@hotmail.com

Hi Ruth,

Before you try to install XP, there is an ME system check
done by XP to see if your computer can be upgraded. Go to
Microsoft.com and look for XP upgrades. I don't remember
exactly which one I looked into but when I checked, my
system was not able to be upgraded without some changes
being made first. Hope this helps you.

Donna.