Windows log on (wsa variant?)

the wsaupdate fix doesnt work.........
I am having problems with my computer. I ran an uninstall for the coolweb searchbar as well as running both AVG and ADaware, and after startup i can no longer log on.....It logs on to the desktop background and then logs off immediatly. Most of the stuff i have read on the net point to blazefinder and wsaupdate.exe as the culprit viruses to cause this. I Have gone through the fix for WSAupdate.exe......(going into system setup and copying userinit.exe etc. etc.), BUT it doesnt work. I think that it is another virus doing the same thing. i dont know if i can edit the registry over the network becuase i think it is setup not to share the c drive. What other viruses would do this? can i replace another file other than WSAUPDATE.exe? im going crazy? and one last small question...if i manage to find my windows xp cd and reinstall windows without formatting the drive will it keep all my installations of programs like microsoft works etc.