Help! I dont know what to do with this error!

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Ok... I consider myself fairly well educated when it comes to computers, however I am having some pretty serious issues here.
1. My C drive apparently does not have or has a corrupted pagefile, and I have been wrestling with this for a month. I have tried setting pagefile to none, restarting and creating a new pagefile, with no effect.
2. My Microsoft Installer Service is no longer working, I have re-installed the Microsoft Installer several times, and it still will not activate when I need to install something.
3.I have run into this error several times recently, and have replaced the .dll file associated with the error, and it refuses to go away,
The error reported is "Error creating process <C:\Documents and Settings\D.Korecki\Local Settings\Temp\IXP000.TMP\PluginInstaller.exe>. Reason: C:\WINNT\system32\advpack.dll.

Now I have done some homework on the advpack.dll file, and it says that it is essential to the proper operation of the Windows OS, but all it seems to stop me from doing is installing Daemon's Tools and The Microsoft Genuine Advantage verifier, but im sure it will cause problems elsewhere if I let it go long enough.
Has anyone had experience with software problems of this magnitude before? Any advice would be helpful, short of clean install, which i have way too many important files to just scrap them.
Sorry for the drawn out post, Thanks for the help

EDIT: Would the failure of Microsoft Installer cause the Windows Update to consistently fail? I have checked my Windows Update logs and the updater has been failing consistently for a long time. I dont know if the installer log will help determine the problem, but if anyone can figure out what it means, here it is. I wish i could upload my latest complete memory dump, but seeing as it is 20 MB uncompressed, and at maximum zip compression it is a hair over 6 mb, that kind of isnt possible.
 
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