Ultraedit is supposed to be the best around, but I've never tried it.
You can install PHP on a Win98 pc. You have two main ways to do it :
1° the easy way : install php4win or some similar software, here the advantage is that the installation process is stramlined and you have all the goodies in one package (php, a server and a db, usually) ;
2° the hard way : install the server (PWS or Apache, maybe others), install PHP, and eventually a db by yourself. Not necessarily hard or difficult to do, but you will have to browse a little if it is the first time you are doing it.
HTH