I'm thinking of upgrading from Win98SE to Win2000 myself; where/how did you do the hardware/software compatibility test?
I'm surprised you had problems with a clean install.
What kind of partition were you attempting to install to?
NTFS or FAT32?
"In both cases the computer stops to function when it tries to install hardware like for e.g. mouse, keyboard…."
During the clean install, was there problems when the PC restarted after setting up the hardware?
Did it freeze?
"What I see on the monitor is short broken lines only"
When is this?
During the boot into Windows, or once into Windows?
What happens if you boot to safe mode?