>I currently have a HDD with the following partitions...
> C: 2G (FAT) Boot-up drive for Win98 (no other drives are visible)
> D: 2G (NTFS) Boot-up drive for NT workstation (all other drives visible)
> E: 4G (NTFS)
> F: 3.5G (NTFS)
>
>At present Win98 is only retained so that my children can run their games, most of which require DirectX, which doesn't run on NT. I've heard that Win2k will run DirectX, can anyone confirm this?

Yes. When I last checked, I believe it supported DirectX 6.

>
>If so, my plan upgrade the entire PC to run on Win2k only from drive C:. Can I do this and retain the current drive partitions, or will I have to repartition from scratch.
>
>The PC has 12G HDD, 64Mb RAM, 350MhZ Pentium II processor - is this too underpowered to run Win2k sucessfully? If so, what should I be looking to upgrade these figures to?

You need more memory. W2K Pro needs at least 128MB and if you can, go with 256 MB. The 2GB FAT partition may be pushing it. You may have to convert to NTFS (or FAT32 if you want to dual boot) because of the disk cluster size and the sheer number of files that come with W2K.

HTH.