Maybe there's something wrong with the laptop configuration. Back in October I bought a 1.6 gHz Dell 4300 with 512 megs of RAM running XP Pro.
I gotta tell you, from a user's perspective, XP COOKS! This is by far the fastest and most stable computer I have ever seen -- bar none. (And yes, I have used Macs, though never Linux).
I can't speak about the security issues, since I am not a techie. But as a very demanding user, I can tell you that XP is terrific and I am recommending it to all my friends.
It is fast as hell, stable as hell, boots up quickly, and has a lot of neat features on it.
Definite thumbs up here!
Advise your co-worker to switch to 2000 instead. Its much much better than 98.