Windows Update extremely sluggish/useless after system recovery.

Hello there,
While trying to help a friend with his laptop, I have come across a bit of a problem, which seems fairly unique. After having searched the 'net and the Knowledge Base I am about as clued in as when I started, which is to say not very.
Machine: Satellite 1800-412 (Danish).
Did: Recover system to scratch back to XP SP1a (DK).
Problem: After doing a complete system recovery using the original recovery CDs, Windows Update runs *extremely* slowly, if at all, once it gets to the point where it scans for which updates you need. I have so far managed to get one (1) update downloaded, a small one. As an update is attempted the CPU usage peaks to 100% and stays there until I give up and hard reboot, since the machine is now nearly useless and sluggish to the point of appearing frozen.
Tried to: Manually applied different updates downloaded directly from Microsoft, like Internet Explorer 6 sp1, XP SP2 (DK), different updates and patches to XP, downloaded and checked/tried to reinstall drivers from Toshiba (they are up to date). Checked that systems boots cleanly with all devices recognized. Checked the system clock. Searched the Toshiba KB, searched the internet, searched the Toshiba support forum. Pulled some hair in desperation. I must have restored the system 4 times by now in order to try different ways of patching the system with updates.
Peculiarities: It is apparently *only* Windows Update, which causes this problem, and only after the very first little bit, where it updates the Windows Update engine inside Internet Explorer. Before I attempt to run an update the machine apparently works normally. I can surf, download, install and run programs and what not. (No, I did not visit any suspicious websites.) If Windows Update runs automatically in the background / 'in the tray', the very same thing happens: Machine suddenly becomes useless and stays that way.
The machine is on a local area network behind a bullet proof OpenBSD firewall, no other Windows machines on the inside, so there is zero chance of a fast infection from the network causing the problem.
Unfortunately: Manually downloading and applying the patches is not an option as I want to activate Automatic Updates before handing the machine back to its owner.
Hope some of you might have an answer to this one, as I have never experienced nor heard about something similar before.
Frank.

Hi Stefan,
Yes, that might be a possible solution, and I have been thinking along those lines myself. The trouble being that I don't have a CD with the correct version of XP (XP Home Edition, Danish) for which the machine is licensed, and here in the middle of the holiday season I have a bit of a problem tracking one down. I even tried calling Microsoft support and Toshiba to see if they would be kind enough to mail me a spare CD. No such luck.
The machine is used by a friend of mine, who has a severe physical disability. It is his main 'communication platform' and he operates it using a single button switch interface. So every additional day of downtime is a bit of a problem. I will probably have to reinstall it for now using the SP 1a base software, then completely disabling the network interface to avoid infections while I look for a XP CD.
The closest I can come to an explanation is that 'something' that Windows Update automatically installs conflicts with the factory supplied software. The problem happens even with a completely freshly recovered setup, so I was hoping this would be a known if perhaps a bit obscure problem.
Thanks again. :-)
Frank.

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