Best and most successful/problem free solution and the least labour intensive in the long term is to back up your data, format the system drive and install Windows2000 from scratch.
 
WindowsME is such a steaming pile of cellulose byproduct consumed by a equine variant that it's not worth installing it in the first place, let alone upgrading to Win2k from it.

Thanks for the reply. How do I get 2000 w/o having to pay for it since I won't be keeping it for longer than a few minutes to upgrade my stuff?

I don't quite follow what you're asking, aside from the naughty request.
 
You can't get the update for Norton and then put it back onto an ME installation - the whole reason you're told that it will only work on 2k or XP is exactly that, it will only work on 2k or XP.
 
So you have a choice:
a) live with the unupgraded Norton and ME
switch to XP or 2kSP3 and upgrade Norton
 
You can't have Norton 2006 on XP, and nobody here will help you source a naughty copy of anything. Seriously though, ditch ME before you're machine dies in a flaming heap. If you use your machine for work purposes or work for the gov't or education, your employer might be able to swing you a legal copy under a Volume License agreement.

No naughty request...I have a legit copy of both programs. It just seems that I need ont to get the other and I can seem to get either installed, hence the error message I referred to...
I am just wondering how I can install the XP on my computer and fix the problem I am having. Then I can update my Norton.
I am trying to do what your "option b" was...Just can't seem to get there from here...please help...

Try this Microsoft article.

After doing the clean boot and following the steps I am still getting the same error message