Those were very different times though. All software was much lighter. The filesystems of the time were fine on it (and I believe NTFS already had journalling even in those days).
I'm not sure what kind of '166' you have. But you're probably running at least a modern webbrowser as IE 4 is no longer suitable in this day & age. Most sites didn't even use https. You also probably use modern-day crypto. Because it's modern adversaries you want to protect yourself again. By using it to do modern things you're taking it a bit out of context.
I was running Windows 2000 on it, with regular NTFS. I did some webbrowsing and Visual Basic for Applications and ASP development. All this fared just fine with full disk encryption (PGP Desktop's "Whole Disk Encryption").
My older work laptop with Windows NT 4 workstation was also fully encrypted. Also with third-party software of course.