Problems with getting online after installing July Windows update

I have had problems getting online ever since I installed the July Windows update.  I had downloaded the update automatically, but did not install until two days later.  That was when the problems began

The first problem I had was that I could not connect.  It was like my modem was dead. I tried modem helper but it didn't find the modem.   I bought a new modem and it did not work. 

I reinstalled the original modem and then I had new problems.  I would turn the computer on and then a few minutes later it would do a screen dump.  This looping would go on and on. The only way I could get it to stop was to go into safe mode, 

At that time I thought the problem could be Norton Antivirus or Zone Alarm as that was what was loading according to the task bar when the system shut down.

I tried to remember everthing I had downloaded previously and remember that the only thing I had done was to install the update.  I have been very careful with emails and other ways of gettng a viruses.

I had several programs that I knew I couldn't get back and didn't want to loose.  I had tried to repair my Window XP installation several time, but that didn't do anything.  Next I reinstalled WinXp over the original which removed the original installation.

The result was that I could get online, but now I get an error message that the website could not be found when I use IE and Outlook Express is unable to find any servers.  I am glad to have something more that a paperweight now.  Some of the programs that I was concerned about are still working while others are gone forever. 

I am borrowing a friend's computer, but would really like to use my own.

Help!