Failed update with XP SP2

I just setup a new computer with xp pro sp2 fully legit. I was able to
update when I first installed xp. Now it will not do the following:

1. Shutdown properly or restart on its own, just sits at "Windows is
shutting down..."
2. Load the windows update page at all, just hangs there

In control panel
1. click on Automatic updates icon, does nothing anymore
2. click on windows security center icon, try to click on "turn on
automatic updates" button, then I get a not responding error with the
rundll32.exe for the windows security center window
3. click on Automatic updates icon under the "Manage security settings
for:" at the bottom and it does nothing.

Also tried to shutdown the service and I receive a Error 1053.

Any suggestions would be appreciated.