problem with windows xp sp2 (installer)

I wonder if someone would be kind enough to offer me some advice.
I have the following system

Dell INSPIRON 1300 laptop
celeron 1.4 mhz
256 ram
40 gb hardrive with 28 gb free
Windows XP Home sp2
with the following software
Office proffesional 2003
IE7 Adware, Spybot, Macafee, Spyware Blaster & Spyware Guard
also network stumbler.

With the following problems.
For sometime now it has been getting slower & slower however the main problem is since I swithched it on yesterday
windows installer comes up, after a while it says windows is configuring office 2003. It thens configues it (as though it is going to install it)
and then I get this eror message:
" error 1304- error writing to file C\ program Files\Microsoft Office111\MS0SV BR DLL verify you have access to that directory.
I retry, same thing, I cancel the process, & then get a box saying
" Fatal Error duirng installation"
if I try to open any office document or software then I get the above. I've tried to repair Office, I've even tried to re install it but to no avail.
Is it a problem with windows or with office? Do I have two seperate problems? It's definatly running very slowly. Paricularly when using IE.
I've run all my virus/spyware programs and nothing showed up- I've defragged the drive, tried a system restore and now am not quite sure what to do.
I've not tried to install/uninstall anything recently. I have windows firewall enabled but not Macafee.Tried turning it off but still really slow. I am also on a home network.

Thought it may help if I psted Logfile of HijackThis v1.99.1
Scan saved at 21:26:49, on 11/01/2007
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.5730.0011)

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\wltrysvc.exe
C:\WINDOWS\System32\bcmwltry.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\PROGRA~1\COMMON~1\AOL\ACS\AOLacsd.exe
C:\Program Files\Common Files\McAfee\HackerWatch\HWAPI.exe
C:\PROGRA~1\McAfee\MSC\mclogsrv.exe
C:\PROGRA~1\McAfee\MSC\mcupdmgr.exe
c:\program files\common files\mcafee\mna\mcnasvc.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcods.exe
C:\PROGRA~1\McAfee\MSC\mcpromgr.exe
c:\PROGRA~1\COMMON~1\mcafee\redirsvc\redirsvc.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcshield.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcsysmon.exe
C:\PROGRA~1\McAfee\MSC\mctskshd.exe
C:\PROGRA~1\McAfee\MSC\mcusrmgr.exe
C:\Program Files\Dell\NICCONFIGSVC\NICCONFIGSVC.exe
C:\WINDOWS\system32\hkcmd.exe
C:\WINDOWS\system32\igfxpers.exe
C:\Program Files\Java\jre1.5.0_10\bin\jusched.exe
C:\WINDOWS\system32\igfxsrvc.exe
C:\WINDOWS\stsystra.exe
C:\PROGRA~1\mcafee.com\agent\mcagent.exe
C:\WINDOWS\system32\WLTRAY.exe
C:\Program Files\CyberLink\PowerDVD\DVDLauncher.exe
C:\Program Files\Dell\Media Experience\DMXLauncher.exe
C:\Program Files\Common Files\InstallShield\UpdateService\issch.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\QuickTime\qttask.exe
C:\WINDOWS\system32\dla\tfswctrl.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Digital Line Detect\DLG.exe
C:\Program Files\SpywareGuard\sgmain.exe
C:\Program Files\Yahoo!\Messenger\ymsgr_tray.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\PROGRA~1\mcafee\msc\mcuimgr.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\SpywareGuard\sgbhp.exe
C:\Program Files\Google\GoogleToolbarNotifier\1.2.908.5008\GoogleToolbarNotifier.exe
C:\Documents and Settings\anyone\My Documents\CProgram FilesHijackThis\HijackThis.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://runonce.msn.com/?v=msgrv75
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKCU\Software\Microsoft\Internet Connection Wizard,ShellNext = http://uk.mcafee.com/root/redirects/support.asp?affid=105
R3 - URLSearchHook: (no name) - {4D25F926-B9FE-4682-BF72-8AB8210D6D75} - C:\Program Files\MyWaySA\SrchAsDe\deSrcAs.dll
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: SpywareGuard Download Protection - {4A368E80-174F-4872-96B5-0B27DDD11DB2} - C:\Program Files\SpywareGuard\dlprotect.dll
O2 - BHO: (no name) - {4D25F921-B9FE-4682-BF72-8AB8210D6D75} - C:\Program Files\MyWaySA\SrchAsDe\deSrcAs.dll
O2 - BHO: DriveLetterAccess - {5CA3D70E-1895-11CF-8E15-001234567890} - C:\WINDOWS\system32\dla\tfswshx.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.5.0_10\bin\ssv.dll
O2 - BHO: scriptproxy - {7DB2D5A0-7241-4E79-B68D-6309F01C5231} - c:\program files\mcafee\virusscan\scriptcl.dll
O2 - BHO: Windows Live Sign-in Helper - {9030D464-4C02-4ABF-8ECC-5164760863C6} - C:\Program Files\Common Files\Microsoft Shared\Windows Live\WindowsLiveLogin.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar3.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar3.dll
O4 - HKLM\..\Run: [igfxtray] C:\WINDOWS\system32\igfxtray.exe
O4 - HKLM\..\Run: [igfxhkcmd] C:\WINDOWS\system32\hkcmd.exe
O4 - HKLM\..\Run: [igfxpers] C:\WINDOWS\system32\igfxpers.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre1.5.0_10\bin\jusched.exe"
O4 - HKLM\..\Run: [SigmatelSysTrayApp] stsystra.exe
O4 - HKLM\..\Run: [Dell Wireless Manager UI] C:\WINDOWS\system32\WLTRAY
O4 - HKLM\..\Run: [DVDLauncher] "C:\Program Files\CyberLink\PowerDVD\DVDLauncher.exe"
O4 - HKLM\..\Run: [DMXLauncher] C:\Program Files\Dell\Media Experience\DMXLauncher.exe
O4 - HKLM\..\Run: [ISUSPM Startup] C:\PROGRA~1\COMMON~1\INSTAL~1\UPDATE~1\ISUSPM.exe -startup
O4 - HKLM\..\Run: [ISUSScheduler] "C:\Program Files\Common Files\InstallShield\UpdateService\issch.exe" -start
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [MSKDetectorExe] C:\Program Files\McAfee\SpamKiller\MSKDetct.exe /uninstall
O4 - HKLM\..\Run: [dla] C:\WINDOWS\system32\dla\tfswctrl.exe
O4 - HKCU\..\Run: [Yahoo! Pager] C:\Program Files\Yahoo!\Messenger\ypager.exe -quiet
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\1.0.720.3640\GoogleToolbarNotifier.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - Startup: SpywareGuard.lnk = C:\Program Files\SpywareGuard\sgmain.exe
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: Digital Line Detect.lnk = ?
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~3\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_10\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_10\bin\ssv.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~3\OFFICE11\REFIEBAR.DLL
O9 - Extra button: PartyPoker.com - {B7FE5D70-9AA2-40F1-9C6B-12A255F085E1} - C:\Program Files\PartyGaming\PartyPoker\RunApp.exe
O9 - Extra 'Tools' menuitem: PartyPoker.com - {B7FE5D70-9AA2-40F1-9C6B-12A255F085E1} - C:\Program Files\PartyGaming\PartyPoker\RunApp.exe
O9 - Extra button: Ladbrokes Poker - {C2A80015-C447-4dc4-82DD-AED83D6ED57E} - C:\Program Files\ladbrokesMPP\MPPoker.exe
O9 - Extra button: Real.com - {CD67F990-D8E9-11d2-98FE-00C0F0318AFE} - C:\WINDOWS\system32\Shdocvw.dll
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O11 - Options group: [INTERNATIONAL] International*
O16 - DPF: {0E8D0700-75DF-11D3-8B4A-0008C7450C4A} (DjVuCtl Class) - http://www.lizardtech.com/download/files/win/djvuplugin/en_US/DjVuControl_en_US.cab
O16 - DPF: {106E49CF-797A-11D2-81A2-00E02C015623} (AlternaTIFF ActiveX) - http://www.alternatiff.com/install/00/alttiff.cab
O16 - DPF: {17492023-C23A-453E-A040-C7C580BBF700} (Windows Genuine Advantage Validation Tool) - http://go.microsoft.com/fwlink/?linkid=39204
O16 - DPF: {4ED9DDF0-7479-4BBE-9335-5A1EDB1D8A21} (McAfee.com Operating System Class) - http://download.mcafee.com/molbin/shared/mcinsctl/4,0,0,101/mcinsctl.cab
O16 - DPF: {4F1E5B1A-2A80-42CA-8532-2D05CB959537} (MSN Photo Upload Tool) - http://by101fd.bay101.hotmail.msn.com/resources/MsnPUpld.cab
O16 - DPF: {5F0C30E4-1E72-4DCC-85E5-57810F1CA97B} (McUpdatePortalFactory Class) - http://www.amiuptodate.com/vsc/bin/1,0,0,9/McUpdatePortal.cab
O16 - DPF: {6E32070A-766D-4EE6-879C-DC1FA91D2FC3} (MUWebControl Class) - http://update.microsoft.com/microsoftupdate/v6/V5Controls/en/x86/client/muweb_site.cab?1139613283593
O16 - DPF: {B38870E4-7ECB-40DA-8C6A-595F0A5519FF} (MsnMessengerSetupDownloadControl Class) - http://messenger.msn.com/download/MsnMessengerSetupDownloader.cab
O16 - DPF: {BCC0FF27-31D9-4614-A68E-C18E1ADA4389} (DwnldGroupMgr Class) - http://download.mcafee.com/molbin/shared/mcgdmgr/1,0,0,26/mcgdmgr.cab
O18 - Protocol: livecall - {828030A1-22C1-4009-854F-8E305202313F} - C:\PROGRA~1\MSNMES~1\MSGRAP~1.DLL
O18 - Protocol: msnim - {828030A1-22C1-4009-854F-8E305202313F} - C:\PROGRA~1\MSNMES~1\MSGRAP~1.DLL
O18 - Filter: application/x-internet-signup - {A173B69A-1F9B-4823-9FDA-412F641E65D6} - C:\Program Files\Tiscali\Tiscali Internet\dlls\tiscalifilter.dll
O20 - Winlogon Notify: igfxcui - C:\WINDOWS\SYSTEM32\igfxdev.dll
O20 - Winlogon Notify: WgaLogon - C:\WINDOWS\SYSTEM32\WgaLogon.dll
O23 - Service: AOL Connectivity Service (AOL ACS) - America Online, Inc. - C:\PROGRA~1\COMMON~1\AOL\ACS\AOLacsd.exe
O23 - Service: McAfee E-mail Proxy (Emproxy) - McAfee, Inc. - C:\PROGRA~1\COMMON~1\McAfee\EmProxy\emproxy.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: iPodService - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: McAfee HackerWatch Service - McAfee, Inc. - C:\Program Files\Common Files\McAfee\HackerWatch\HWAPI.exe
O23 - Service: McAfee Log Manager (McLogManagerService) - McAfee, Inc. - C:\PROGRA~1\McAfee\MSC\mclogsrv.exe
O23 - Service: McAfee Update Manager (mcmispupdmgr) - McAfee, Inc. - C:\PROGRA~1\McAfee\MSC\mcupdmgr.exe
O23 - Service: McAfee Network Agent (McNASvc) - McAfee, Inc. - c:\program files\common files\mcafee\mna\mcnasvc.exe
O23 - Service: McAfee Scanner (McODS) - McAfee, Inc. - C:\PROGRA~1\McAfee\VIRUSS~1\mcods.exe
O23 - Service: McAfee Protection Manager (mcpromgr) - McAfee, Inc. - C:\PROGRA~1\McAfee\MSC\mcpromgr.exe
O23 - Service: McAfee Redirector Service (McRedirector) - McAfee, Inc. - c:\PROGRA~1\COMMON~1\mcafee\redirsvc\redirsvc.exe
O23 - Service: McAfee Real-time Scanner (McShield) - McAfee, Inc. - C:\PROGRA~1\McAfee\VIRUSS~1\mcshield.exe
O23 - Service: McAfee SystemGuards (McSysmon) - McAfee, Inc. - C:\PROGRA~1\McAfee\VIRUSS~1\mcsysmon.exe
O23 - Service: McAfee Task Scheduler (McTskshd.exe) - McAfee, Inc. - C:\PROGRA~1\McAfee\MSC\mctskshd.exe
O23 - Service: McAfee User Manager (mcusrmgr) - McAfee, Inc. - C:\PROGRA~1\McAfee\MSC\mcusrmgr.exe
O23 - Service: NICCONFIGSVC - Dell Inc. - C:\Program Files\Dell\NICCONFIGSVC\NICCONFIGSVC.exe
O23 - Service: Dell Wireless WLAN Tray Service (wltrysvc) - Unknown owner - C:\WINDOWS\System32\wltrysvc.exe

Thanking you in advance for any help/advice

Lynne