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Win98SE has linitationas as u describe, but for an old motherboard, limited memory it's a reasonable choice. Indeed XP may require rather more memory.
Win98SE will support USB-1.1 as far as I know it only affects speed. There may be other issues with the combination like support for HDD being a bit limited...but u have the Asus directions.....probably best to get as much as you can "now" before they drop support.
The only other thing to check is the BIOS battery - would be a shame to discover it's about to croak having set everything up....
++Let us know how it goes....At least you don't need Microsoft's "permission" to use your software on your computer.
I suspect the only limitations are No video, no modern games. but everyting you might want to do is there, USB, OpenOffice, IE5.5 (probably) and ability to fix yr photos, share over the web and print. You know there is a memory limit for Win98 - typically 256M is about it - and HDD's are troublesome over 137G without partitioning.
Good luck .. . . . .
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