You have to pay for a newer Microsoft operating system (OS). However, if your computer is old, it may not have the capability to run a newer OS effectively. An alternative is to install a free operating system such as Linux or Ubuntu. However, to do that would require a certain level of computer savvy, and you would have the learning curve for using a non-Microsoft OS that has different characteristics than you are used to. In addition, these may not perform well with your computer if it is really old.

In order to give you any reliable info, you should tell us how old this computer is, what the brand/model is, and how much RAM is installed.

The best and safest value for money is to go for a new desktop/monitor package deal to replace the system (desktop?)you now have. That way you get the latest Windows 7 OS, and a good internet system with a warranty likely for well under $500. Desktops are now fading in popularity and are great value. Trying to cobble something together on an old system could leave you stranded after paying about the same.

ME is much older than 3 years as XP was released in 2001. It would be generally obsolete and security vulnerable.

It does not sound as this is the case, but I would only recommend bringing the system back to life as a result of "tinkering". If at all possible a new system would be the recommended way to go.

DA

Check your local Sunday paper adds, very good deals on PC's up until Xmas, saw some awesome deals on pkgs. for just under $400. some even lower...at Staples, Office Depot, and Best Buy, even Walmart, where you have NP's with returns, yes even on PC's.. I know returned one there, and bought an HP instead also at Walmart..and they sell the top brands too..also check their online website, some better deals only online..

That pc would be a good candidate to install one of the linux Operating systems, they are free and run on much less resources. However as mentioned it would take learning a little about it but truthfully if you will be going from ME to windows 7 that will be quite a bit to learn too much has changed.
Other than that with an old pc most likely it would not be compatible with the latest windows OS.

If you are interested here is a guide on the distro of Linux I use called Mepis.
MEPIS

I didn't mean that my computer was only 3 yrs.old. I literally haven't had it turned on because we had computers at work and I was always working so I used theirs. now I am unemployed at the time and I was going to use mine but it's so old even a snail could beat it in a race,but without a job for right now I was hoping maybe there was cheap updates untill I could afford a new one. thank you all alot for your advice