Thanks for the help!

It took me a couple of days to find something that would work. The answer finally came from the Norton anti-virus site, and is exactly what syphus recommended. Here's what I learned at Norton:

To turn off programs that are running in the background you have to use ctrl-Alt-Delete. When the list comes up turn off everything but the system tray and Explorer (I use Juno, but left Explorer on JIC - maybe someone could explain if this was unnecessary?). You have to do this one program at a time.

After I did this, scan-disk would finally work. 4 hours later the disk was finally scanned. I was able to run defragment and 5-6 hours later my ordeal was finally over! I still had a problem of the internet logon screen popping up 2 or 3 times, but the scanning and defrag programs would return to the place where it was interrupted after I closed the logon screen. (Does anyone know how to turn that off?)

I'm definitely going to upgrade to Windows XP Home. While I was searching the internet for answers I found out that MS won't be supporting Windows ME as of June of this year.

Anywho, thanks all!