msconfig identifies automatic updates as cause for shutdown proble

I have run into a problem. My system will not shutdown. I ran through the
shutdown troubleshooter and identified through msconfig that the automatic
updates are causing the problem.

Windows update will not run at all - if the automatic update runs, which it
does not all of the time - it just gets hung up at 34%. If I try to access
Windows Update through the control panel - it will not allow me to access the
site, I just get a blank IE screen.

I have tried to do a system restore, but was not able to restore as the
system would not re-boot. I have tried to boot with the last known good
configuration and still nothing.

I have run out of ideas, so I would appreciate any help that anyone may be
able to lend - as it is really getting to be a pain to force shutdown every
time I use my system.

I am running Windows XP Professional w/ SP2. Thanks