Ah, you have plenty question, let me try to crack it.
1. Device drivers and drivers is same, but if you are referring to software and hardware, it is little different. Hardware drivers is used for hardware as long as the hardware is present. Software is used for some of decode/encode and the virtual hardware such as Daemon Tools.
2. Never, never have the Windows ME installed on your computer, and never, never consider one. This is a terrible operating system Microsoft ever invented, Microsoft dropped that project about few month after too many compliants.
3. Start Menu and Startup Menu... The Start Menu is a button located at bottom-left that display lot of program and shortcuts for the application you have installed in your computer. Startup Menu is located at Start>(Win9X+2k)Programs, (XP and newer) ALL Programs>Startup>... Startup is used for after the windows finished load the os, it read the startup and run the application that require the auto-run such as anti-virus.
4. The disk management and power management aren't removed from all the windows system, they are still right in Start>Programs>Accessories> and in >System Tools.
5. It is generally best idea to have the hard drive formatted so your system would not have to be confused by the device orders. It is best to follow the instruction for the OS. Windows XP and 2000 or newer automatically ask you to format hard drive before installation.
6. My thought about the remote upgrade is - piracy. Microsoft discontinued the remote upgrades due to the Devil copy (as known as FCKGW and the -640-) So, it is best idea is just have clean installation indicated in #5.
7. Some manual has written wrongly, it is best idea to investigate yourself with the CD, fooling around with CD until you satifised with your setting or what you have learned.
8. Anti-virus - that give me chill when you install or upgrade the OS with Antivirus actively working in background. It will serious corrupt the files. It is best idea is to have it disabled before install or upgrade the OS, not remove it.
9. It is best idea to leave the Bios as plug and play. that way the driver have easy time to identify your hardware and install it. You can only disable the PNP Bios if you have hard time to install driver invidual (Such as Windows ME!)
Whew, wow, my hand hurts, now have you got all the answer you wanted? I hope so... thank for that questions.
Lucan