It seems that you've been blocked by some firewall, because updates use ports for traffic, just like web (80)...try disabling all firewalls and try with different updates from different application...
I see two very evident problems in your system specs:
1. 120MB RAM> you should have at least 512MB RAM for Windows XP
2. Windows XP SP1> you are very behind in the windows Updates. That has left known vulnerabilities unpatched. Expect malware on your system.
I see your note for Video "can't handle SP2". What does this mean?