Your computer isn't passing the initial test on the Live Update Site. This can be because of a couple of reasons. The most likely is that you have not activated the XP update or it is coming up as a Pirate Copy. If it's the latter and you have the MS Supplied CD you'll need to ring M$ and get them to issue a new product key but you'll need to read the numbers off the inner ring of the CD to tell M$ which version of XP you actually have so that they can provide a Product Key that actually works with your product.
To change the product key use Key Finder available here
http://tinyurl.com/b01p
But you'll need to use FF or something else to view the page as IE no longer will allow this page to be viewed.
The other thing that could be happening is that if you are running XP Pro you may have chosen to connect this computer to a Domain when you initially set it up and that is causing the problem. As the Windows Update Page is looking for a Domain Controller to authenticate that you have the necessary rights to update this system.
Col