Unstable win98

Computer crashes and freezes a lot, especially while running IE. I ran Norton Systemworks and it didn't find any hardware problems; I fixed all the bad links, etc. that it found. Sooo, I figured the problem must be malware. The thing is fairly stable when not on the internet and not too bad using Firefox or Opera, but goes down quickly using IE.
I tried to follow the "do this first" routine on http://forums.majorgeeks.com/showthread.php?t=35407 but was not able to run the online checks (Bitdefender and Panda) cause of the IE problem. I jumped ahead to Hijackthis, but I didn't notice the part about not restricting start up items in msconfig (and I had shut off a bunch of stuff to try to get the thing stabalized).
The computer belongs to a friend, and I don't have access to it right now, but can you look at the attached Hijackthis log and offer advice?

 

I was in a hurry with my first post and forgot to mention that I reinstalled Win98se twice. I will attempt to upload a hijackthis log after doing a normal start in msconfig and the counterspy log if this darned thing doesn't crash before I get it done.

 

I have been avoiding wiping the drive, but now I will bite the bullet.

I have downloaded killdisk; is that a good way to go?

Thanks for your expert help.

 

OK. Since my last post I have wiped C: drive and reinstalled win98se. I did not wipe partitions D: and E:. The beast is much faster now, but still gives the BSOD often, and often freezes up (will not take input from keyboard or mouse), especially on my wife's favorite games site (Pogo, I think). I have again checked for hardware problems with Norton Systemworks, and we update and run AntiVir and AdawareSE often. Systemworks found no hardware problems. AntiVir does not find anything but gives a warning about not being able to open the swap file. Adaware finds some data mining cookies sometimes, and we quarantine them.

Any ideas?

Thanks.

btw, when we first started having problems Systemworks found a bad memory stick which we removed. It still has 256mb. Celeron-A 456 mhz.