Those 4 pop ups are NORMAL, MS is NOT spying on you, those are used for internet (don't remember exactly what they did, if you're brave, search MS, they'll tell you what they do.)
If you don't want MS "spying" on you...
1) Turn off Error Reporting (Right click my computer, Properties, Advanced, Error Reporting.
2) If you use WMP, and want to neuture it, open WMP and go Tools, Options, and clear "Download codecs automatically" "Allow internet sites to uniquely identify your player" "Aquire liscenses automatically" "Start player in Media Guide", on the "Media Library" tab select "No access" for both, and clear "Automatically add purchased music to my library". WMP will now not send any personal info about you or your computer to anyone.
3) Uninstall Windows Messenger, go Start, Run, and type in
RunDll32 advpack.dll,LaunchINFSection %windir%\INF\msmsgs.inf,BLC.Remove
4) Disable some services, go start, run, type in services.msc and you might want to disable "Messenger" "Remote Registry" "SSDP Discovery Service" "Universal Plug and Play Device Host". All of those you will never need, and will only cause security breeches.
5) If you have broadband, go into the control panel, Network connections, right click your connection, properties, and you can safely uninstall all the protocalls there except for TCP/IP. Leave "Client for Microsoft Networks" in there if your Windows computer will connect to another windows computer on your home network. This gets rid of protocals you don't need.
Go to
http://www.markusjansson.net/exp.html if you're real paranoid in securing XP. Yes, it is actually possible to secure XP.