Okay... WinMe is legacy based. Last of its kind, but not 16bit platform. I hate when people say that it is, because if it were true 16bit platform, then all 7th generation x86 would not function, PCI would and AGP = useless, there wouldnt be a 4gb memory cap.it would be maxed out at 512mb if i remember correctly, and maximum file size executable is so much smaller. Legacy based, not legacy or legacy emulated.
First off, update all windows media player 9 components. Then spend some time removing it and running just mplayer2.exe(windows media player 6.4) This removes a lot of shell integration that WMplayer has...basically a comon problem in XP. Win98se had ie 5.0 as its big problem w/ integration, well this is XP's. Hopefully this will either be improved in upcomming releases, I dont know, but doing this on every system that I have worked on had virtually eliminated that lame BSOD when people do normal multimedia functions. Important thing behind this would be that integration, not the option of using other players. I don't need to tell you, but there are better players for each and every file type if you want optimal performance.. that's all up to your prefrence. I know many will disagree with me on this, and many will agree... its a pain to remove wmp9, but it is possible via the registry and a good readme. In ME, wmp9 was not integrated.
If that doesnt work. Then make sure you have SP1 updated, directx updated with propper drivers, Install codecs that are backwards compat with 3.11a since 3.11a on XP is a nightmare for a lot of people.
If all that fails... you have a serious issue that needs to be troubleshooted. Basic configuration type things. I don't think your a n00b, but there is obviously something that you are missing.
If I run windows, I personally perfer an updated 98se. Support has been dropped on it, but that makes no diffrence to me since its so much more configurable than XP and doesnt hog memory like Me. 95b was the first 32bit legacy windows, definately experimental and buggy, but the 16 and 32 bit really isnt the issue. XP has problems too. Basically your trading one type of problem for another. But thats how all OS's are, even posix.
My suggestion to you is go through every peice of hardware and install whatever you need to solve those conflics that are bluescreening you.
Outside the wmplayer integration and SP1+updates... there is no general solution. You will need to troubleshoot via the conflicts that specifically apply to your hardware.
Now I wear my force field outfit to protect me from those who want to kill me for bashing on either XP or WMP9