Hello once again,
Lol another day another question.Ok so here a basic rundown of the problem.

I have been attempting to help repair a friends PC via remote assistance.The PC in question specs are-
Windows XP home edition SP1a (various SP2 fixes installed as well but not the full SP2)
AMD athlon XP 2600+
512MB DDR ram
Default mobo that came installed in PC (onboard Soundmax digital audio sound,ethernet)
Nvidia Geforce 5200
DVD writer
DVD reader
Now lately the PC has been getting many system errors and BSOD's.After looking in the error logs i see one persisitant error that simply wont stop.It is starting to happen more frequently multiple times a day.The error is as follows
Type (Error)-Date (date here)-time (time here)-Source (System Error)-Catagory (102)-Event (1003)-User (N/A)-Computer Name (PC name)
Also says when clicking on the error
system error
catagory (102)
Now we have tried all the Basics,Virus scanning,Adware/spyware scanning,Updating drivers,Updating XP to SP2.

After upgrading to SP2 the PC became unstable,security center would not work and was always shown as diabled in the system tray,you also would get an error when trying to access the Windows Firewall saying "can not be opened",also Internet explorer would no longer function.The internet was connected and programs such as MSN messenger could connect however "remote assistance","Internet Explorer" and other programs seems to be blocked from the interenet access.

After this we uninstalled SP2 and decided to try a system restore to a few months earlier before the problem began even though some programs that were installed recently would be affected but systemrestore would give an error saying it could not restore to that date.

Now System restore seems to have cleared it's log of previous restore points so we are at a wall.

I first wanted to ask is there any idea what could have caused the blocking of "internet explorer" and other programs from the net?The PC owner says this isn't the first time they had the issue.The previous time it occured was after a windows update.After which the PC could no longer access the internet.In the end system restore was the only way to fix it.

Second i am leaning towards giving the opinion to try an XP repair install.Usually i would be quite comfortable with this but in this case since the PC owner doesnt know hardly anything about PC's in general i am afraid to do so due to the fear of it once again causing internet access to act up as it did above and there being no way back because system restore points would be deleted from the repair install.

If anyone has any suggestions,opinions or pretty much any info of things i have yet to try it would be appreciated.