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.
If nothing helps try again in a day or two. Sometimes the page might be down.
Thnx for the suggestions nothing worked. Microsoft just replyed to me and said that there is a problem because they made changes to the update web site. They will help get it straightened out, a lot of people r having tis problem.