I have a HP 8510 laptop running XP Pro, Intel Core 2 T5600 and when I select Shutdown or Restart it closes network connections but sits at the blue screen, (not the BSOD) and will not shut down or restart without having to hold the power button on the laptop. I have shut down all processes before I shut down and scanned the PC for any spyware and malware. Does anyone have any suggestions on how to get this to work properly?

scan/clean your registry with something like ccleaner. Also check this page for more suggestions
http://www.windowsnetworking.com/articles_tutorials/Troubleshooting-Windows-Shutdown.html

can you try a different user on this machine. what you describe could also be a broken user profile.

http://www.theeldergeek.com/shutdown_issues_in_xp.htm

Check ACPI (think that is the name) with the Cores and their shutdown parameters I have seen that sometimes you have to force them down with the button instead of shutdown via Windows. In the BIOS, typically you can try either (again that darned memory) Compatibility mode or Enhanced, depending on BIOS. (those may not be the right options). Good Luck whatever you find!

Duces
-UZ