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Provided he is able to run Windows ME despite the password issue, I can't see that being the reason for the wireless adaptor failing to install (or any other device failing to install for that matter).
Windows ME can, however, be a real pain when it comes to installing devices, as well as being generally troublesome in many other ways.
I think it's true to say it's the worst version of Windows that Microsoft ever released, and even many Microsoft employees would agree with that verdict.
Upgrading to XP would be a big step up in terms of reliability and greater compatibility with todays hardware, not to mention it being more pleasant to use. You really ought to be rid of Windows ME by now, for even XP is considered by many to be 'out of date', yet millions of people are happily using it (including me). Even some Vista users have been so disappointed they've gone back to XP.
Just one thing you need to consider first is the availability of XP drivers for your existing hardware (printer, scanner etc.). If they were not supplied with XP drivers you should visit the respective manufacturer's websites to see if they have XP drivers available for your model, because if they haven't you will be faced with having to buy a new printer or whatever it is. The bottom line is, ME drivers are no good for XP. The good news is an XP CD contains hundreds of drivers for the most common devices, but until you install XP you won't know which drivers you'll need to get from elsewhere. Almost certainly a printer or scanner will require a driver from the manufacturer, but many graphics cards and sound cards won't as XP often has drivers for them already.
By all means upgrade. Since you currently have Windows ME I have no hesitation in recommending you do that.
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