Windows XP unable ot download updates

Hello everyone,
I have a celeron computer running Win XP Home, with sevice Pack 1. I'm trying to get updates for window but I have run in to some problems and was unable to connect the the update wep site.  First I was getting an error message: # 0x8DDD0018, so I got in contacted with someone from microsoft via e-mail, and this is what the e-mail read:

This issue should be related to the service setting. I suggest check the services and then restart to see if it works.

1. Click Start --> select Run. In the Run box, type services.msc Click OK
2. Find the Background Intelligent Transfer Service. Right-click on it and select Properties
3. Click on Stop and then again click on Start. In the Startup Type list, make sure that "Automatic" is selected. Click OK
4. Similarly find Automatic Updates service. Right-click on it and select Properties
5. Click on Stop and then again click on Start. In the Startup Type list, make sure that "Automatic" is selected. Click OK
6. Close the Services window

NOTE: If you are running Ad-aware or ZoneAlarm or PC-Cillin or Norton Antivirus or Norton Internet Security or Norton Personal Firewall or McAfee or Proxomitron pop-up blocker or Ad Muncher or web accelerator e.g. "Slipstream", I would recommend you to temporarily disable or shut down any of these
installed on your system and try accessing Windows Update site. Be sure to enable them again when you complete the update process.

We have found that this issue can also occur because of the corrupt content of the Windows Update DataStore and Download folders in your system. Kindly complete the steps below to delete the contents of the Download folders:

1. Stop the Automatic Updates service
A. Click Start.
B. Choose Run.
C. In the Run box, type services.msc.
D. Click OK.
E. Right-click the Automatic Updates service.
F. Click Stop. Stopping the service will take a moment.
NOTE: The following will delete your History.

2. Delete the contents of the DataStore folder            
A. Click Start.
B. Choose Run.
C. In the Run box, type %windir%\SoftwareDistribution    
D. Click OK.
E. Clear all the file and folders in it
F. Close the window.

3. Start the Automatic Updates service
A. Click Start.
B. Choose Run.
C. In the Run box, type services.msc.
D. Click OK.
E. Right-click the Automatic Updates service.
F. Click Start. Starting the service will take a moment.

I am now able to connect to the microsoft update web site.  When I try to download the updates it kind of hangs there for a while and then I get this message:

The following updates failed to be installed successfully:


Update for Background Intelligent Transfer Service (BITS) 2.0 and WinHTTP 5.1 (KB842773)

Error: There is not enough disk space to install the update(s). Free additional space on your hard disk and then try again.

That's strange, the error message above does not apper on the web page. It only showed up when I copied and paste!!
I just checked and I have 30.3 GB of free space!

have tried everything he mentioned above for the exception of Delete the contents of the DataStore folder. Not sure what he means when he siad to delete contents of the DataStore. I see the DataStore file... when I open it with notepad I see all kind of unreadable data, is this what he wants me to delete?  I don't want to delete anything that's going to stop other programs from running properly.

This computer actually belongs to a friend of mind. He asked me if I would install norton ativirus software in his computer. So before I installed it I decided to check for windows updates and that's when I started running in to these problems.  Something else that seems kind of strange.... when I check the System Information, it reads:

Can't collect Information - Can not access the Windows Management software. Windows Managament files may be moved or missing.  Think this might be the problem?
Hey guys I'm sorry for long e-mail.

Thanks