HELP! ME locks up. What can I do?

I'm currently running ME and am having horrible problems with it locking up
every few minutes requiring a cold boot. (Not the boots made of leather,
although that too is tempting!)

1) When it locks up, keyboard and mouse input is not recognized. It will
simply freeze as if someone unplugged my keyboard. I don't get a blue screen
or any other indication of a problem. I'll just be typing away and suddenly
realize that I'm stuck. This will happen anywhere from a few seconds to a
few minutes after I boot. What are my options to resolve this issue?

2) One of the IT guys here at the office said that ME is very unstable and
it a likely suspect for my issues. XP (He recommended XP Pro) is more stable
and is likely to resolve these issues. Is this true?

3) ME came pre-loaded and I have no reinstall software. IF I buy a FULL
version of XP, I've heard that I MUST install it onto a formatted hard drive.
Is this true? Must I format the hard drive to install a FULL version of XP?
I'd prefer the FULL to the UPGRADE because I have no reinstall or restore
disk for the ME version. Consequently, if something goes wrong, I may end up
having to format and rebuild from scratch.