DCpunk,
If you need assistance:
Please visit the following link and submit a FREE support request for the Windows Update problem you are experiencing. See below:
https://support.microsoft.com/oas/default.aspx?gprid=6527
At this we cannot continue customer support. Please submit the free service request where they will open a case and contact you. Please keep in mind you be asked the same subset of questions we have asked you during this process.
If for some reason Microsoft will not assist you due to your Operating System being a Blocked Volume License Key, we suggest purchasing another Operating System at a local retailer.
Another reminder, Microsoft is not responsible for supporting Blocked Volume License copies of Windows XP.
Thank you for visiting the Windows Genuine Advantage (WGA) program forum.