With subtle improvments over Windows 98 2nd Edition, this should really be called just a 3rd edition. It does adds support to DV video editing, improved MP3 and .JPG file handling, added anti-virus/erasing security and improved home networking support for broadband connections. It also supports web pages AS desktop, which is a neat new feature expanding on the Active Desktop theme. There is a new system restore function that will allow a user to revert back to "times" where the system may have performed better but has since experienced a problem due to a bad program, user mistake, or any other problem. It's new file security helps insure that critical system files are not accidentally erased by the user, or purposely by a rogue program such as a virus. It gets a facelift borrowing from the corporate version of Windows, Windows 2000 sharing ICONS, wallpaper, window animations, and NO MORE SYSTEM DISKS. That's right, with Windows Me, like Win2000 you will NO longer be able to make system diskettes. Your only choice will be using Start Up disks. the format /s switch as well as "copy system files" selections are gone from this OS.
Most of the best enhancements appearing in Windows Me are already available for free from Microsoft; Media Player 7, the updated and more tightly integrated MSN Messenger/Netmeeting which allows AOL style instant messaging to incorporate video with ease, and DirectX 7.
Will it's release still a month away, and the final product just now going to manufacturing, many companies have now released updated drivers so if you have hardware that must function the moment you upgrade, please check your hardware vendor to make sure an update driver is available if necessary.
Hopefully a cheaper upgrade will be available to those who already use Windows 98 2nd edition like there was for Win98 users when Win98 2nd Ed. was released.