It's Windows98 (not even SE). I can't even get windows update to work. I've tried to install SE over the top, but I get a message telling me to buy the upgrade version
I guess you tried to install Windows 98 SE OEM Edition on an existing Windows 98 installation.
One can do following;
1. Delete the old Windows directory
2. Format C drive.
PS; Make sure you have a working DOS boot disk.