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It depends
WinMe is no option as it is too unstable
Win98SE is the most compatible OS for now as it also will play games which were released before WinXP. There are a lot of games which simply do not work with WinXP (and for which are no updates available)
in WinXP it is possible to run a game (or anything else) in Win9x compatible mode but this usually does not fix certain problems
So the ultimate gaming machine should have a multiboot system to boot either Win98 or WinXP
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