XP issues

I'm posting this in hopes of resolving the issues on this computer that I 'volunteered' to fix – as of now it is beyond me.
I've cleaned what I could with AVG/spybot as the computer was inundated with viruses/malware/spyware.
The main issue I'm currently having is not being able to grab Windows XP updates.
The issue appears to be with the activeX object and the manage add-ons in IE. I uninstalled IE7 to revert back to IE6 to no avail.
I've tried changing the security settings in IE6 to allow activeX objects to be installed. Clicking on the IE bar to install the activeX object does not work.
I get a pop up at the cog icon - manage updates - that says this is disabled.

Thanks in advance for your help.

^^

Here is my hijackthis log:

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 12:26:36 AM, on 3/23/2009
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
C:\WINDOWS\System32\HPZipm12.exe
C:\WINDOWS\System32\svchost.exe
C:\PROGRA~1\AVG\AVG8\avgemc.exe
C:\PROGRA~1\AVG\AVG8\avgrsx.exe
C:\PROGRA~1\AVG\AVG8\avgnsx.exe
C:\Program Files\AVG\AVG8\avgcsrvx.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\PROGRA~1\AVG\AVG8\avgtray.exe
C:\Program Files\Messenger\msmsgs.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\system32\wuauclt.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe
C:\Program Files\Mozilla Firefox\firefox.exe
\?\C:\WINDOWS\system32\WBEM\WMIADAP.EXE

O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll
O2 - BHO: Spybot-S&D IE Protection - {53707962-6F74-2D53-2644-206D7942484F} - C:\Program Files\Spybot - Search & Destroy\SDHelper.dll
O4 - HKLM\..\Run: [PinnacleDriverCheck] C:\WINDOWS\system32\PSDrvCheck.exe -CheckReg
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [AVG8_TRAY] C:\PROGRA~1\AVG\AVG8\avgtray.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Restrictions present
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Control Panel present
O8 - Extra context menu item: &Search - ?p=ZJ
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\Program Files\Spybot - Search & Destroy\SDHelper.dll
O9 - Extra 'Tools' menuitem: Spybot - Search && Destroy Configuration - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\Program Files\Spybot - Search & Destroy\SDHelper.dll
O16 - DPF: {17492023-C23A-453E-A040-C7C580BBF700} (Windows Genuine Advantage Validation Tool) - http://go.microsoft.com/fwlink/?linkid=39204
O16 - DPF: {6E32070A-766D-4EE6-879C-DC1FA91D2FC3} (MUWebControl Class) - http://update.microsoft.com/microsoftupdat…b?1124898116381
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG8\avgpp.dll
O20 - Winlogon Notify: avgrsstarter - C:\WINDOWS\SYSTEM32\avgrsstx.dll
O23 - Service: AVG Free8 E-mail Scanner (avg8emc) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgemc.exe
O23 - Service: AVG Free8 WatchDog (avg8wd) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
O23 - Service: Google Updater Service (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: HP Port Resolver - Hewlett-Packard Company - C:\WINDOWS\system32\spool\drivers\w32x86\3\HPBPRO.EXE
O23 - Service: HP Status Server - Hewlett-Packard Company - C:\WINDOWS\system32\spool\drivers\w32x86\3\HPBOID.EXE
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\System32\HPZipm12.exe

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