This is what you should see in the first two lines of that log:
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)
This is perhaps the whole problem.
Can you describe exactly what happens when you try to download @ Windows Update?
To view an error log go to Start | Search | windows update.log
Post back just the most recent errors. There will (or should) be a
large log there.
Perhaps we can troubleshoot the errors there.
There is also a troubleshooting tool on the left hand menu of Windows Update.
There is also this newsgroup dedicated to Windows Update:
microsoft . public . windowsupdate
As I mentioned; if the above doesn't help you probably need to repair XP.
How this is done depends on the type of XP CD you have.