For the record, Windows Millennium Edition (ME) is the worst operating system of Microsoft (based on DOS).
Kinda. Comparing any of the Win 9x/ME variants is more akin to judging a "best-in stool sample" award at an farmer's annual cattle convention.
Windows 2000 is 100 times better
Was it not for the lack of USB support, I wouldn't hesitate to recommend NT.
You can make an stripped down version of the Windows XP install disk. This Windows XP lite edition requires less RAM than the normal Windows XP. You can also do this with Windows 2000.
You could probably accomplish the same using the original distribution; disable any unnecessary services, registry manipulation etc ad infinitum
TinyXP is a stripped down version of Windows XP, made with nLite. You can't download it, because this is illegal.
It's funny how the first comment in the link you provided does just that.