Duplicate Automatic Updates and Browsing Issues

Desktop WindowsXP Professional SP3

The system in question was taken offline over 3 years ago, because of a virus... and has since been used solely for non-internet type work.

This weekend I decided to clean it up and place back online. I ran malware and virus detection software to remove the virus, installed all old Windows Updates (took several hours, 250+ updates … including installing SP3), cleaned up temp files and defragged. Unfortunately, I now have two issues.

First... after installing all the updates, there is one Update which keeps reappearing. I probably installed it a dozen times before I realized it was the same update:

Security Update for Microsoft Visual C++2008 Service Pack 1 Redistributable Package (KB2538243)

It's from May 2011and only takes a few seconds to install... but shortly after the installation, it keeps reappearing to install in the systray. Is there any way to stop this particular update from reappearing without shutting down automatic updates?

Second... when browsing the internet with IE8, there were many websites to which I wasn't being redirected. IE would just hang, so I tried going to the same websites with Chrome and Firefox. The same results. I couldn't even get to google.com from any browser. However, I could “ping” any website with 0% packet loss, so I know my internet connection is fine. Incidentally, I'm using the same internet access point writing this communication, except I'm using a wireless connection with a Win7 laptop instead of an eithernet cable to the XP Desktop.

Any idea what's happening? Is there a setting that I've missed? I also tried "ipconfig /flushdns" and rebooted with no success. Thanks