Please don't take this the wrong way but other than the download issue all the problems you've listed would all come under user errors and/or lack of experience.
The virus infections are what they are. There's no after the fact support other than possible fixes. More important is the availablity of info on how prevent from getting attacked.
Go to http://www.support.microsoft.com and in the upper right there's a graphic of a box with 3 shades of green that has the steps to protecting your system. Read closely and do what it says.
As they told you, Microsoft never sends update information throught email or screen popups.
All Internet service providers let you know to never give out you screen name and password and that they under no circumstances will ask for that info online or through email. This is usually mentioned somewhere as you sign up the account. In our excitement to get online we tend to skip reading the messages that are provided during setup. Over the years we've become accustomed to clicking next at each step of the setup process. For anything to do with the Internet its best to know exactly what you're getting into.
The service pack issue could be related to many things. Please post just that question and any error messages. Also include info about you system and connection type.
The backup your attempting to do no longer works the way it did in the past. Please go to the help files and search for backup as a topic so that you can learn the correct way to complete this important task.
The help files is easy to use and has the instructions on how to do pretty much everything.
