If you cannot update XP check your c:\windows\windows update.log. If you have this error: Error 0x800C0008 then go to Tools\internet options\languages. You must have one language selected. Boom windows update works again!
Or for LAN settings
Go to control panel, open up Internet Options\Connections. Click on the Lan Settings button at the bottom right of the window. Untick Automatically detect settings.