Xp Sp2

Auto update downloaded SP2 on my computer 2 days ago.In IE you cannot open most links on a web page even Microsoft's.My work around for that was to download Firefox.
Know auto update keeps telling me I need to install update KB828026.(it is under add and remove,I belive it was there before the SP2 update) I tried 6 different things Microsoft wanted me to do and a couple of others ,none have worked.Ended up just turning it off.
Does anyone have any suggestion's for these 2 problems?
Thank you

 

http://forums.majorgeeks.com/showthread.php?t=31907&highlight=urlmon.dll

For issue one.

 

For issue 2:

Do you have this registry key?

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Updates\Windows Media Player\wm828026

 

I tried what was suggested for IE Did not work. I went to Microsoft and looked back though my updates and saw that KB821557 was not installed .So I downloaded and installed it .Does not seem to make a differnce for the install of KB828026 or IE

 

I can not find any updates listed in my registery.I am probaly doing something wrong.(the picture looks like my cat)