Curious did this happen after you installed SP2 ??

If it did then read this : You cannot start the Windows Firewall service in Windows XP Service Pack 2

I see that you got Kazaa Lite K++ I dont know if you use it... But if you do well uninstall the program ... Gave me way too many headaches for what it's worth ....

As for spyware I dont see anything ... But I may be wrong ...