Well im using xp pro and win 98SE (slightly different I know). This works fine for me, im sharing files and printers from 98SE, but not wiith xp, mainly beause I dont want to (other family members messing with my files is not good!!) but also os my xpp drives are NTFS formatted. You therefore must use FAT32 to share your files from xp.
Although I have rarely used ME, it should work because the network isn't gonna distinguise that you are using ME.