How to update Windows 98?

Windows 98 is dead long time ago. and I don't think it is updatable to newer version of Windows. 

You need to delete it and install new windows from the scratch.

1. Click Start, click Run, type msconfig, and then click OK.
2. Click Selective Startup.
3. Clear all the check boxes, and then click OK.
4. Restart the computer, and then try to run the Windows XP Setup program or Windows XP Upgrade Advisor again.