191MB of RAM is honestly too little to run XP. XP will probably install properly on your system but it will be too slow to be functional, so it's probably better not to upgrade.
Another alternative that you might want to consider will be to purchase more RAM for your computer. This will be more economical compared to purchasing a brand new computer but you've got to weigh the cost at your end as the cost of XP + RAM may be approaching that of purchasing a new computer system with XP installed. (XP is expensive)
Do try the Win98 drivers again. The Anapod page has a link to another driver at
http://www.redchairsoftware.com/files/ipod98driver.exe as well. If your current computer fits your needs and you can get the drivers working, there is no need to spend any money on RAM or XP.