usuly when you dual boot between linux and windows you have to install linux first then windows for it to work without files getting trashed on the fat partition, as for winme its a screwy os to begin with so i would go to win 2000 or above lol
Thats not true, I find it better to install Windows first, since it will overwrite the MBR, so it saves you some work. Ive never had any problems.
Your problem is probobly that when you resized the FAT32 partition to make room for Linux, you deleted some important files. You should have defraged and scandisked before resizing. Its a dangerous process.