I don't want to get involved here because I really don't have a lot of good news to offer. many of you will know that I've been fixing PC software issues since the introduction of MSDOS way back in 84-85. I've fixed a lot of sick, very sick and dead machines in my time, but Windows keeps throwing new stuff at you all the time. My comments here cover a lot of the posts above but not in any particular order.
I have all the latest XP updates (every one!), I haven't ditched anything and I don't have the problem.
Due to a suggestion made here, I installed Malwarebyte. The free version is too basic for me. The small footprint and mini database suggests it's no match for Spybot or Adaware. Malwarebyte showed no errors on my machine and that's garbage. Every time you go somewhere a bit off course, you pick up crap. I'll bet Spybot and Adaware would find dozens of issues. I'll try them tomorrow.
HiJack This is a very powerful and very dangerous tool. So much so, the developers ask novices not to make any changes to their computer unless the log has been checked by an expert first. Due to the backlog, that can take time.
This is the bad news: I did a search on the Internet last night and you're not alone. There are hundreds of similar cases reported in the forums, without a single solution. Often the advice you get from these places is garbage anyway. For example, one guy suggests you format your HD every month. I never format mine unless I have a crash, which does happen, but is rare.
When I was in Melbourne, my friend's hard disk also never stopped running. As a result, I spent one week of my vacation fixing it. Some vacation! He had the same problem, but I could not tell you what the cause was. I spent two days doing all the standard diagnostics, repairs, cleanups etc., but the problem persisted. I eventually backed up all his data (no programs or drivers), then reformatted the hard disk. The next few days were spent loading all new software, replacing drivers and all the data into a dozen different user accounts. Yuk? If I was being paid, it would have been a Thousand Dollar job.
The result was a much improved machine with a completely taimed hard disk. I then replaced the 256kb memory with 1 gig and the 5 year old Dell is flying.
Before you take on the task of reformatting, there are several things you can try. I've written a checklist and basic tutorial on this forum at least a dozen times before and I do not wish to do it again. The thing is, you decide on who you think is giving the best advice and you follow them - and them only. Jumping from one fix to another could break your machine.
Guys, I'm not having a go at anyone here. All the advice above is good advice, but mix it up and it's not so good. For example, person A says use this trojan remover, and person B says use this one. Both may be fine, but Windows can only handle one real time trojan remover at a time. If you try to run two together, they will start fighting each other and all hell will break loose. So you run AVG or Nortons, but never both!
Things like Malwarebyte are different. They are not Trojan removers, they are Malware removers and they run on demand. Thus you will only run one at a time anyway.
Doing a disk defrag is another thing. If you run it while your antivirus software is running, the defrag will be constantly interrupted because another program used the disk. That program of course, was your Antivirus software checking up on defrag. This endless cycle will make a four hour defrag take days.
Before you begin to think about formatting your computer, you should spend a day fixing it. That work may save you a lot of time in the long run.
I'll put a first aid kit on my site so that anyone interested can read it at any time. It will take me a day or two to prepare it because I'll try to make it as painless as possible. I'll let you know when it's there, but in the meantime don't panic.
One final question: Did you ever download and/or install an anti Malware program from Microsoft? I can't recall the name, but I think it's part of Vista. I don't mean the Microsoft Malicious Software Removal Tool which is part of the updates. There was another one which was absolute garbage. it also made the hard disk work overtime.