If you could clarify this
I went to their website, and it said that i needed to this version of xp will not install sp2... no Active-X installed or not activited, whatever that means.
I'm a little unclear of what you were saying...
However if you are saying your version will not install SP2 and has no activeX installed, it sounds like your version isn't a complete version of XP, especially if you cannot get SP2 for it.
Otherwise, can you install other things? One of the things that prevents people from installing in XP (except for spyware, hacks, trojans, and all the bad stuff mysteriously) is if your XP account is not an adminstrative account. You need to be an administrator on the computer accounts and listed as such on XP in order to install most items. That's the best guess I can get with what you've told us this far.
Addendum: In which form are you going to the WinUpdate page? Have you tried enabling the Windows Update in WinXP itself and see if you can do it via the autoinstaller there?
IF you have gotten to the update pages, make sure the critical updates or SP2 are actually checked. It will not install without them being marked as thus.
A more indepth account of what you have and have not tried would help tremendously