NIS freezes computer at startup

I am hoping that I can get some advice regarding a Norton and or computer issue that I have. I have been sick and do not have extra money to pay someone to help me.

I have  2006 Sony Vaio laptop with preloaded NIS 2006 , Win XP Media Center 2005. w SP2  I have not had any problems with NIS except with an infrequent CCAP.EXE  End Now message at shut down.  Now when I start computer , it boots normally and most of the startup programs load until it gets to urllstk.exe and ccap.exe.  When they load they each take up 50% CPU , making the comp inoperable and I have to force a hard shutdown.  It did this repeatedly. I can only get to the task manager if I  open it before those two process load. I tried ending the urllstk.exe since it seemed to have the most trouble loading and got the "could not terminate access denied" message. I also got a message about one of the preloaded game software failing to start and needing to debug (I can gove more info if needed).

 I was able to get into safe mode and start copying important files. I also looked the the Admin Tools to look at Event Manager to see what was going on... I saw quite a few errors regarding Live Update not responding and a couple   referring to LiveUpdate being corrupt.These entries happened over the past few days and the time looked like it was around times I would have started or shut down my computer. I have screen shots or Event Ids if that helps.  I have  couple of ideas but don;t know what I should do first besides get my personal files copied.

I am thinking that either Norton is corrupted,   the registry is corrupted, the hard drive is fragmented or has errors or worse is failing, or malware has corrupted Norton (although I primarily use the comp to read email or at worst youtube, I know that it is possible for an infected ad to have malware).

I do not have disks for any software that came with the pc as it has a partitioned  drive with recovery module . I do have recovery disks.

What should I do first?  Check the harddrive for errors? defragment the hardrive? unintstall NIS 2006 (can I even do this if it is corrupt) , run an online scan to check for malware/virus?  Or attempt to wipe everything and reinstall everything using the built in recover console.  I have to check if I can even  buy and install a new Norton product. I am not certain that my comp  meets the minimum recommended specs  which grow with each new edition.  .

Whatever I do, right now I can only do it in safe mode.

I don't have much money either so I really appreciate your advice.
Thank you and please let me know if you need anymore information, Event IDs, etc.