Think i got some bad virus

You have not followed the directions in the READ & RUN ME but in answer to your question, there is nothing wrong with the below two processes:
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe

They are both valid required Windows processes.

What you should be more concerned with is the fact that your OS is way out of date and represents a major security risk to you.

You need to follow the below procedure immediately:

How to Protect yourself from malware!

 

You're welcome! But don't just read it.....actually do it.

 

I just wanted to make sure you actually ran ALL the steps in the How to protect thread. I was hinting on the fact that you said

After you complete ALL the steps in the How to protect thread. I would like to see a new HJT log to make sure everything was updated. Many people run into problems getting Win XP SP2 installed. They select the update and indicate that it downloaded and updated, but when I look at the log.....I see no change which means they did not get updated.

One note though. You can not get updated without Authenticating your Windows XP license with Microsoft. This is part of the online procedure that will occur before they will install SP2.