could be a combination of both......
But I would DEFINITELY recommend upgrading that loser OS you are running to at least win2K or XP. Are you using a router? If so, read on.
CASE 1: I was assisting one of my clients setup a new wireless router on his cable system. Configged a wireless laptop running 98, no problem. Connected his office laptop running 2K, no problem. Tried connecting his main desktop PC running ME and never got it to use the routed connection. Did the release/renew IP and it would connect to the router but would time out going to any webpage. The damndest thing was you could connect that PC directly to the modem and it would surf the internet fine.
CASE 2: another client with a wired cable DSL router had numerous problems getting his ME desktop to surf the web. He was using SBC DSL and the router that supported the PPOE protocol. All configged and the machine would not get out at all. It would pull an IP fine but it would not access the web. Plug it in directly to the modem and voila! access was restored. he battled with the SBC tech suppport (BTW, they only support routers THEY sell) and in desperation gave up. A few months later his machine crashes, and he upgrades to XP. Out of curiosity he pulls the router out of the closet connects it back up and the machine (now running XP) gets out fine.
Because of these two most recent issues with ME and knowing what I know about the inherent issues with it, I now advise any ME folks to upgrade to a newer OS. Why continue to fight yesterdays problems with an older outdated OS anway?
Good luck with it