XP, IE doesn't recognize internet connection

a software made for windows 98 will not run on a window xp machine,

You have not mentioned the current version of your internet explorer.
The Internet Explorer 6 with service pack 1 was the last edition that can run with Windows 98/98SE/ME
IE6 with service pack2 (the service pack can be installed separately) requires Windows XP or later.
So If you are currently on IE5 you can upgrade it to IE6 and install Service pack 1 after the upgrade. You cannot go beyond IE6 SP1 with Windows 98.

HI,
SONY DOESN,T SUPPORTS XP3 NOW........
GO FOR XP2 OR VISTA....OR
PLZ UPGRADE YOUR DIGCAM DRIVER TO THE LATEST VERSION FROM SONY WEBSITE

It could be that the sites you going to are specifically written for IE. Now most of the time this should not be an issue with today's web browsers, but some sites have a Browser Validation script they run and if it recognizes that you are using something other than IE, it will through an error. Try upgrading to the current versions of the browser (i.e. FF3). Don't forget Safari and Opera. They may work for you as well.

try running ccleaner

http://www.filehippo.com/download_ccleaner/download/86e6a458e780243c3a944b66ec60b319/

You need to upgrade or just buy a new computer. Im assuming your getting Verizon DSL or FIOS
which need more computer power for the software that it needs.

Try looking for a new computer that is Windows XP Service Pack 3 or Windows Vista
with at least 1 gig of ram. That should fix the problem of verizon services notbeing compatible with your hardware.

Windows 98 SE supports USB 2.0. The original Windows 98 (gold) or Windows 98 OEM or Windows 98 Upgrade versions which are not SE will not support USB 2.0. Nor is there any way to get USB 2.0 support for these Windows 98 versions unless you upgrade to Windows 98 SE.

Note that the Windows 98 SE upgrade CD will fail upon completion, leaving the SE Upgrade with a corrupt registry, if you try to run the Windows 98 SE Upgrade CD on a Windows 98 system that has a version of IE installed which is higher than IE 4.

By connecting the camera to a computer with the provided USB cable,
images on a card can be transferred to the computer. Some OS's (operating
systems) may need a special setup when connecting to the camera for the
first time. Follow the chart below. For details on the procedures in the chart,
refer to the “Reference Manual” on the CD-ROM and the “Software
Installation Guide” (included in the CD-ROM package).
Identifying the OS
Windows 98/98 SE
(Second Edition)
Windows 2000
Professional/Me/XP
Mac OS 9.0 - 9.1/OS X
*OS 8.6: See below.

Connecting the camera to a computer using the provided USB cable
Installing the USB
driver for Windows 98
Confirming the computer recognizes the camera
Downloading image files
Disconnecting the USB cable
 

Even if your computer has a USB connector, data transfer may not function correctly if
you are using one of the operating systems listed below or if you have an add-on USB
connector (extension card, etc.).
● Windows 95/NT 4.0
● Windows 98/98 SE upgrade from Windows 95
● Mac OS 8.6 or lower (except Mac OS 8.6 equipped with USB MASS Storage support
1.3.5 installed at the factory)
● Data transfer is not guaranteed on a home-built PC system or PCs with no factory
installed OS.
You can view images using: graphics applications that support the JPEG
file format (Paint Shop Pro, Photoshop, etc.); Internet browsers (Netscape
Communicator, Microsoft Internet Explorer, etc.); CAMEDIA Master
software; or other software. For details on using commercial graphics
applications, refer to their instruction manuals.