Please download and install: http://download.microsoft.com/download/5/3/3/533a40be-936b-4267-b043-2f04233a78a6/WindowsXP-KB905474-ENU-x86.exe
Then re-boot Windows. Does this resolve the issue?
If not, then: Please follow this simple troubleshooting procedure:
1. Download and install the MGA Diagnostic Tool: http://go.microsoft.com/fwlink/?linkid=52012
2. After running the MGA Diagnostic Tool, click on the "Windows" tab and then click on "Copy to Clipboard".
3. Next, visit the following website and create a post in the "WGA Validation Problems" forum and paste the results of the WGA Diagnostic Data in a detailed post. http://forums.microsoft.com/Genuine/default.aspx?SiteID=25
4. A WGA troubleshooting specialist will analyze the data and recommend an appropriate solution.