I've found that the basic WinME install is crappy and runs like a dog. Ive looked around and found that these options really improve peformance.

Install the critical update from the windows update.
Disable the System Restore Feature in System Properties
In control panel, disable auto updates
Set a Swap File min/max of 750mb - 1gb
install memturbo2 and setup the cache tuning option.

Now I've done all this and its pretty effective, but one thing ive noticed that i can't find any information on, is why does my internet connection pause every now and then for up to a minute (no data in or out)

Any Ideas?