Hey there

Found a fix on the lavasoft site...the people who bring us ad-aware.....

Boot from win xp and go to recovery module...at the recovery prompt

c:\windows

type 'cd system 32' and the directory should now be

c:\windows\system32

type 'copy userinit.exe wsaupdater.exe'

1 file copied

Now , just reboot, and wait while ad-aware finishes what it was doing.

Hope this helps...I know I'm relieved to have my machine back.