Microsoft error message,not valid version of windows???

My roommate has a used laptop,Operating Windows xp ,he has used it for about 3 months and now A message appears before windows can even boot ,stateing that the version of windows is not valid, I have tried windows update and can no longer get updates only a message to purchase a new version of windows.When he first purchased the laptop I helped him update windows,so it was valid at one time.Can this be some type of virus.?? or something that may happen with a used computer. Thanks for any help you can give me
Mike

Please download the current version of HijackThis from HERE

• Double click and run the installer.
  
• It will install to C:\Program Files\Trend Micro\HijackThis\hijackthis.exe
  
• After installing, you should get the user agreement, press accept and Hijack This will run.
  
• Select Do a system scan and save a log file. This will open a notepad file of everything Hijack This found, copy and paste it back here.
  

Logfile of Trend Micro HijackThis v2.0.2


Scan saved at 12:28:51 PM, on 8/8/2009
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v8.00 (8.00.6001.18702)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\WLTRYSVC.EXE
C:\WINDOWS\System32\bcmwltry.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Common Files\ArcSoft\Connection Service\Bin\ACService.exe
C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
C:\Program Files\AskBarDis\bar\bin\AskService.exe
C:\Program Files\AskBarDis\bar\bin\ASKUpgrade.exe
C:\Program Files\Bonjour\mDNSResponder.exe
C:\Program Files\McAfee\Common Framework\FrameworkService.exe
C:\Program Files\McAfee\VirusScan Enterprise\Mcshield.exe
C:\Program Files\McAfee\VirusScan Enterprise\VsTskMgr.exe
C:\Program Files\CyberLink\Shared files\RichVideo.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\WgaTray.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\McAfee\Common Framework\UdaterUI.exe
C:\Program Files\Apoint\Apoint.exe
C:\WINDOWS\system32\WLTRAY.exe
C:\Program Files\Common Files\ArcSoft\Connection Service\Bin\ACDaemon.exe
C:\Program Files\SiteRanker\SiteRankTray.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Common Files\Ahead\Lib\NMBgMonitor.exe
C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
C:\Program Files\Clearwire\Clearwire Connection Manager\Clearwire.exe
C:\Program Files\McAfee\Common Framework\McTray.exe
C:\Program Files\Apoint\Apntex.exe
C:\Program Files\Apoint\HidFind.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Bar = http://toolbar.inbox.com/search/dispatcher.aspx?tp=aus&qkw=%s&tbid=%tb_id%language
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,SearchAssistant = http://toolbar.inbox.com/search/ie.aspx?tbid=80103
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,CustomizeSearch = http://toolbar.inbox.com/help/sa_customize.aspx?tbid=80103
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,SearchAssistant = http://toolbar.inbox.com/search/ie.aspx?tbid=80103
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,CustomizeSearch = http://toolbar.inbox.com/help/sa_customize.aspx?tbid=80103
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = *.local
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelper.dll
O2 - BHO: IEPlugin Class - {11222041-111B-46E3-BD29-EFB2449479B1} - C:\PROGRA~1\ArcSoft\MEDIAC~1\INTERN~1\ARCURL~1.DLL
O2 - BHO: (no name) - {11BF46C6-B3DE-48BD-BF70-3AD85CAB80B5} - C:\PROGRA~1\SITERA~1\SiteRank.dll
O2 - BHO: AskBar BHO - {201f27d4-3704-41d6-89c1-aa35e39143ed} - C:\Program Files\AskBarDis\bar\bin\askBar.dll
O2 - BHO: Spybot-S&D IE Protection - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: scriptproxy - {7DB2D5A0-7241-4E79-B68D-6309F01C5231} - C:\Program Files\McAfee\VirusScan Enterprise\scriptcl.dll
O3 - Toolbar: Ask Toolbar - {3041d03e-fd4b-44e0-b742-2d9b88305f98} - C:\Program Files\AskBarDis\bar\bin\askBar.dll
O4 - HKLM\..\Run: [ShStatEXE] "C:\Program Files\McAfee\VirusScan Enterprise\SHSTAT.EXE" /STANDALONE
O4 - HKLM\..\Run: [McAfeeUpdaterUI] "C:\Program Files\McAfee\Common Framework\UdaterUI.exe" /StartedFromRunKey
O4 - HKLM\..\Run: [Apoint] C:\Program Files\Apoint\Apoint.exe
O4 - HKLM\..\Run: [Broadcom Wireless Manager UI] C:\WINDOWS\system32\WLTRAY.exe
O4 - HKLM\..\Run: [NeroFilterCheck] C:\Program Files\Common Files\Ahead\Lib\NeroCheck.exe
O4 - HKLM\..\Run: [ArcSoft Connection Service] C:\Program Files\Common Files\ArcSoft\Connection Service\Bin\ACDaemon.exe
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [SiteRanker] "C:\Program Files\SiteRanker\SiteRankTray.exe"
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [BgMonitor_{79662E04-7C6C-4d9f-84C7-88D8A56B10AA}] "C:\Program Files\Common Files\Ahead\Lib\NMBgMonitor.exe"
O4 - HKCU\..\Run: [SpybotSD TeaTimer] C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
O4 - HKUS\S-1-5-18\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'Default user')
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Reader 8.0\Reader\reader_sl.exe
O4 - Global Startup: Adobe Reader Synchronizer.lnk = C:\Program Files\Adobe\Reader 8.0\Reader\AdobeCollabSync.exe
O4 - Global Startup: Clearwire.lnk = C:\Program Files\Clearwire\Clearwire Connection Manager\Clearwire.exe
O6 - HKLM\Software\Policies\Microsoft\Internet Explorer\Restrictions present
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~1\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~1\OFFICE11\REFIEBAR.DLL
O9 - Extra button: (no name) - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O9 - Extra 'Tools' menuitem: Spybot - Search & Destroy Configuration - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O10 - Unknown file in Winsock LSP: c:\windows\system32\nwprovau.dll
O23 - Service: ArcSoft Connect Daemon (ACDaemon) - ArcSoft Inc. - C:\Program Files\Common Files\ArcSoft\Connection Service\Bin\ACService.exe
O23 - Service: Apple Mobile Device - Apple Inc. - C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
O23 - Service: ASKService - Unknown owner - C:\Program Files\AskBarDis\bar\bin\AskService.exe
O23 - Service: ASKUpgrade - Unknown owner - C:\Program Files\AskBarDis\bar\bin\ASKUpgrade.exe
O23 - Service: Ati HotKey Poller - ATI Technologies Inc. - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: Bonjour Service - Apple Inc. - C:\Program Files\Bonjour\mDNSResponder.exe
O23 - Service: Google Update Service (gupdate1c9cdf7aa7ea514) (gupdate1c9cdf7aa7ea514) - Google Inc. - C:\Program Files\Google\Update\GoogleUpdate.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: McAfee Framework Service (McAfeeFramework) - McAfee, Inc. - C:\Program Files\McAfee\Common Framework\FrameworkService.exe
O23 - Service: McAfee McShield (McShield) - McAfee, Inc. - C:\Program Files\McAfee\VirusScan Enterprise\Mcshield.exe
O23 - Service: McAfee Task Manager (McTaskManager) - McAfee, Inc. - C:\Program Files\McAfee\VirusScan Enterprise\VsTskMgr.exe
O23 - Service: NBService - Nero AG - C:\Program Files\Nero\Nero 7\Nero BackItUp\NBService.exe
O23 - Service: Cyberlink RichVideo Service(CRVS) (RichVideo) - Unknown owner - C:\Program Files\CyberLink\Shared files\RichVideo.exe
O23 - Service: Dell Wireless WLAN Tray Service (wltrysvc) - Unknown owner - C:\WINDOWS\System32\WLTRYSVC.EXE

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End of file - 8384 bytes
Thanks again for any help you can be
Mike