When you start installing do you start in the original ME, or do you boot up with the CD as a startup disk. What you should do is have the ME cd in and boot into that, then start the install.
Re-installing an OS over itself, can have both positive and negative benefits. It may or may not fix the problems you are having. Also ME is not really that great of an OS compared to win 2k and winXP. If it is possible, I suggest upgrading to those more stable OS's.