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Can you package the entire system into a zipfile and then uncompress it on a different hard drive, or restore it WHEN needed (such as for a mis-install) onto the same hard drive, successfully?
Yes. Although RAR/7z is a better option if you're using NTFS, since RAR can store file permissions and ADS (alternate data streams).
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Can privacy-invading files be removed, especially those buried deep in the system, such as the contents of %windir%\Application Data\Macromedia\Flash Player\#SharedObjects\ ? Are there not "legacy software" entries in the registry that the OS won't allow to be deleted? Have efforts to 'tweak' the system been thwarted because the OS denies 'permission'?
You just need to know how to set the permissions. Google for cacls and setacl.
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Has System Backup ever been needed to restore a sick OS, only to get 'caught in a loop', because the system needs to be functioning for restore, but first needs to be restored to function?
In most cases, safe mode almost always works, and you can do a restore from the safe mode. If you can't get to the safe mode, then a few basic commands typed in the recovery console (like fixboot, fixmbr etc) can get the system up and running atleast till you reach the safe mode. If the system still isn't booting up (because of files that are missing/corrupted), a simple and quick repair install will fix the problem.
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Can files the OS won't allow modification of (even in Win98) be handled by 'dropping' into a low-level OS such as DOS?
Yes, there is a "low-level DOS" (technically, console mode). It's called WinPE and is present in form of the recovery console present on the XP Setup disk. You can either boot off the CD, or install the recovery console to the HDD. Once there, you can do all sorts of modifications/restorations. But you don't even need to do all that. You can use the native mode (remember the blue screen when chkdsk runs?) to do modification of system files. Just edit the
PendingFileRenameOperations key.
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Yes, the latest 'powerful' hardware is needed to run XP (or worse, Vista) fast, isn't it? It is often 'powerful' indeed, gobbling upwards of 200 Watts, requiring multiple fans yet still getting hot enough to shorten its life (including HDD --- and data). Computers can't be turned on or off easily (no, not even 98/ME), so are typically left on. So total electricity use is high, and this could be of greater importance in the future. Yes, more expensive laptops conserve power, but with lower reliability, higher repair cost, and less upgradeability. Windows 98/ME hybrid runs fine on a 25 Watt VIA M10000 M/B desktop. This is great for leaving it on all day, to catch streaming breaking news and the like.
XP's
minimum requirement is a 233 MHz processor. Although this is much higher than 98's (66 Mhz), it can in no way be considered as the "latest powerful hardware". Regarding Vista, 1GHz CPU and 512 MB RAM is once again not considerd "latest". (The 1GHz barrier was broken atleast 7 years ago.)
Now I haven't run XP on a 233 Mhz system, but I am at present typing this on a 10 year old AMD K6-2 PC, running fine with XP installed (tweaked fully, of course).
About electricity consumption, Windows XP has
better power management features. One example is that when the PC is idle, XP issues HLT instructions to the CPU. This puts CPU in a suspended mode, thus reducing heat generation and power consumption.
Windows 98 doesn't have this feature, thus needing third-party programs like RAIN or CPUIdle, which do not always work that well.
Also, your statement "
computers can't be turned on or off easily" is a bit debatable - with XP's Hibernate feature, (and Vista's Sleep), one can startup/shutdown in less than 30 secs. XP/Vista take full advantage of the ACPI features of a modern PC. 98 on the other hand, doesn't even enable ACPI by default, and from personal experience, its ACPI support is buggy (eg: Shutting down windows doesn't always turn off the PC). With XP/Vista, it has never been more convenient to quickly turn the PC on/off.
Finally, about power consumption, a standard XP system uses about
38Watts in idle state and 58W during regular usage (nowhere close to the 200W you assumed!). So yes, the consumption on a standard XP system is more compared to a 98 system, but that's because of all the extra services and the new GUI processes that are running in the background. Turn of the unnecessary services (there are many!) and configure the system to run in Best Performance mode (no visual effects), and the power consumption will drop like a ton.
I'm not sure what hardware you're using, but my PIII system (450 MHz | 40GB Seagate | nVidia Riva TNT) has been constantly up since 1999, without any extra fans. I upgraded to XP in 2002 and since then I've almost never shut the PC down, except for maintanance/cleaning. I got the AMD K6-2 recently, but it's been running fine too without any extra fans. The 20 GB Seagate im using on the AMD is much older, but it too has been running nearly 24x7 and running fine too. (touchwood). Just FYI, I'm not in an air conditioned room, and the room temp here is almost always 30c (give or take a few degrees).
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For someone just now starting computing, WinXP SP2 Home (SP3 rumor?) may be the best choice]
XP SP3 isn't a rumor, its real. Not only that, they say its actually
10% faster than SP2!
Btw, regarding your #SharedObjects concern (commonly called Flash Cookies), the best option is to go to the
Global Storage Settings panel and disable the option “Allow third-party Flash content to store data on your computer”. You can also review and delete the cookies from the settings panel.