I am getting the same thing but was not able to follow your directions. Here is what is going on with my system (P4 1.2, 700+ MB memory, win XP fully updated).
As you said Task mang. would not run with the normal key strokes.
I could not find system32 in the win dir, it wasn't there. I did a search for taskmrg.exe and found it and put it on my desktop.
I ran it and found cpu usage to be at most 11%.
I looked for winupdates.exe and did not see it.
I was able to uninstall LW and of course it no longet starts every few sec. or when I open some programs ......but I get a java error message telling me it can't start so it's still there just the program is not there to run.
Have you any help for me to get rid of the POS?
Thanks,
Steve