Hey, I'm pretty new to the biking scene so I want to see what people think of this.

I've been riding Rocky Slayer now for about a year but I started out on this Scott:
http://tinyurl.com/255uq3f
(Not my photo but exactly the same setup)

I still have the Scott and would like to at least salvage the frame so that I can have a hardtail in my stable of ponies.

From what I've read, the frame is circa 1998. Would it be a waste of time/money/effort to keep the frame and toss a better fork and group on it? I'm not looking for great or even brand new components to put on it, just stuff that isn't old and past its useful life like what's currently on there (see photo regarding the setup). I guess my price range on something like this would be somewhere around $1000 but I really don't have a good idea on what this could obtain or whether I should bite the bullet and get a new frame.

Thanks for the help.