Windows XP: Reformat - New Problem (KB2506223 vs AVG?)

[Prototype]

So I decided to finally decided to reformat my computer as it was running slow as dirt.

I have been letting all the automatic updates run its course. I get to the Windows Service Pack 3, and when it asks for a reboot I go for it.

And then the loop starts. Gets just past the Windows load screen and shuts down, re-loads, Window screen, shuts down, rinse, repeat.

I've been able to go back and recover to a previous working point, but I'd like to have everything all updated. Any suggestions?

[Prototype]

I think I may have found the problem.

[Prototype]

I'm bumping into a new problem. I'm unable to do the Windows XP update for KB2506223. A quick search on the internet comes up with something about hijacking. I've never heard of this before, and AVG keeps coming up.

A) How do I get this update to work?

B) Is AVG really that bad a anti-virus?

[BlackArcher101]

AVG started to piss me off (including windows updating as well), so I moved to Microsoft Security Essentials and haven't had a single problem yet.