This entry in your log;
O4 - HKLM\..\Run: [muBlinder] C:\Program Files\muBlinder\muBlinder.exe -startup

Tells us that you very likely are using muBlinder a program that bypasses the Windows Validation and enables people with pirated Windows to get Windows Updates

Since program piracy or offering assistance with program piracy is in violation of Forum Rules we cannot offer assistance in this matter. I would urge you to get your copy of Windows XP validated, very few, if any, reputiable Computer Forums will offer assistance with pirated copies of any Windows operating system.