Hi,
My system is very slow any folder takes a huge time to open.Every time it starts up it gives a message "system has recovered from serious error".Used the MS kb http://support.microsoft.com/kb/317277
to download and fix the issue.It said you have a newer service pack than teh one which you are trying to install.
ctrl+Alt+Del gives the error message "Task manager has been disabled by your Admin".I downloaded the exe mentioned at http://www.pchell.com/support/taskm...
still it didnt solve.

Since task manager seems to be down at the moment.If you can, try downloading a program called
SIW. Look in running processes. If you click once on an unknown a "what is it" will be displayed. You should be able to see what is eating up your resources.I would also do some free online virus scans if you haven't already.
First thing is, you don't have enough ram to push XP... You should have at least 256 mb..
128 with XP will be real SLOW..
