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I am trying to figure out what virus is causing this error, when I try to run Microsoft Updates on a Win XP Home computer I get ftp.exe is open or is in use by another application. I seen on one post where someone said it was the W32.sasser.a virus but when I searched for the files that it said it creates "avserve.exe" there is no such file on the hard drive or any instance of it in the registery. I ran the sasser removal too also & nothing was found.
I have scanned the system for spyware using SpySweeper, Ad-Aware SE, & MS AntiSpyware. I have also scanned all files using Norton 2004 with latest definitions updated. When I tried to access the Services to see if it has an ftp service running I get a message saying I don't have permission, same goes for trying to run cmd.exe
Has anyone else encountered this problem & if so did you find a fix?

There are many programs that auto-update using FTP undetected. So, IMHO, it is best to not let them do so.

I finally got it fixed, below are the steps I had to go through.
Solution:
Take Ownership of files:
Boot into Windows XP in safe mode on the Administrator account.
Open My Computer & go to the Windows\System32 folder.
Right click the System32 folder & select properties.
Click the Security tab & add Administrators & give it full access.
I had system there & removed it.
Open the System32 folder & do the same to cmd.exe, ftp.exe, services.msc.
Rename ftp.exe to ftp.ex_Install SP2:
Reboot your system & go to www.microsoft.com & run the updates.
Install SP2.
Reboot your system after the updates are completed.Test your system:
Now go to Control Panel & try to access Services, if you see ftp loading as a service disable it.
Click Start Run… type cmd & OK that.
You should be able to access both commands now.
If not then boot back up in Safe Mode & take Ownership of the C drive same way you did in step 1.
Now everything should be working.
Replace ftp.exe with the ftp.exe file from the Windows XP CD.eric

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