Windows Update problem, and error screen

I have two problems on the computer:

1: Whenever I go to the Windows update site it only finds and downloads the Genuine Validation Tool, over and over, and won't go to the next step of finding current patches, etc. This Dell Dimension 4600 PC was new from Dell within the year, and has a valid Windows XP CD and key number. I have shut down and rebooted multiple times, and have just been through a painful process removing some spyware so I know it is clean of that. I checked the ActiveX security levels and matched them to what Microsoft suggests for downloading this tool, but it does download and install OK - just over and over!

2: Each time I boot there is an error message (screen shot attached) for the Status Monitor which I think is for the Brother printer which I do not have at this location. What may cause this problem?