Application Recovery Disks Nightmare

Basically, I am the poster child for computer dummies so try not to laugh too hard at my dilemma. My operating system is WindowsME. I only use my pc for email and internet which I have through AOL with a DSL high speed modem provided by them. I kept receiving a message when starting pc that was telling me that there was a problem with a file named IPHLPAPI.DLL (not a clue what any of this means). I contacted AOL and they basically told me to use the Application Recovery Disks that came with pc and uninstall windows, then use these disks, which I did. My pc was purchased in December 2000 so they are pretty old. Now everything has been reset to the original settings with useless programs and outdated info. My password even shows up invalid for aol. The text on my screen is shaking slightly but enough to give me a headache. I am beginning to believe I would be better off to ditch ME and purchase XP just to be able to start over, but can't really afford it right now. How can I begin to dig myself out of this one. Also, I am still getting the message about the IPHLPAPI.DLL file. Please, HELP!