you wouldnt be downgrading so to speak, you'd be running 98 inside of XP (i know upon hearing that your non-nerd brain is about to explode so ill take it slow

) vmware is a program that lets you run other operating systems inside of another operating system. its actually pretty easy. all you have to do is download the program, ill give you the serial number for it, then you get a copy of 98 and install it like you normally would.
any yes xp is newer but idk if i would say better
[geek] why old games dont work on 2000/xp/2003 is that back in the day there were two different "types" of windows. the version that was used in homes and the version that was used in businesses (such as NT4) they worked off of different technologies and supported different things. now the did away with the "home" version of windows and made everything the "business" version. 2000, xp and 2003 are based off of NT4 (xp is actually NT 5) [/geek]