Your windows search is the reason I had you post a logfile.I read online that the 'Unexpected Error, Action could not be completed' error you received sometimes happens when a related registry key is deleted accidentally.Spybot would not ordinarily delete that registry key,but it is possible if a false positive happened in a spybot scan.If that had happened,then it should have been easy to put the registry key back through recovery.
However,having said the above,just to be sure,if you noticed this item in your Spybot 1.4 scan:
That should not be related to your Windows XP search.I found it listed online as being related to AVG safe search,so recovering it will not help your Windows XP search problem.I wanted to let you know that to avoid confusion.
Spybot logfiles are kept in the All Users folder in Windows XP,so if there is another user on your computer,it's possible the logfile was from when they ran a scan with Spybot 1.4.
Too bad the fix-it from Microsoft wouldn't have worked,that would have been great.

I saw online that people with your same error tried reinstalling windows xp search,but it didn't seem to help.I did find a Microsoft article online that was helpful,but it involves registry editing,which may be difficult,depending on whether you're experienced with registry editing or not.
But in the meantime,instead of going with that,if you wouldn't mind,it would be better to check for the false positive,because if it's there,it's the easiest solution.
Could you post a newer Fixes.yymmdd-hhmm logfile?If you know the date your Windows XP search error started happening,and you ran a Spybot scan on that date,please post that one,or if you're unsure of when it started happening,just post a Fixes logfile from roughly when the error statrted happening.
Wow. A lot of stuff to respond to. The drive is in a used PC I bought to replace my original one, whose drive was damaged beyond repair when I turned it over to a remote "speed up" group. Despite all their attempts, it eventually would not even boot in safe mode. The "new" PC has XP Pro, SP3. You mention AVG - I have the paid version and run it daily, as I post files on the web, and want to help ensure I have no malware in my files.
I would take a chance with editing the registry, if I really knew what I was doing. I have opened one before, not sure if I changed anything.
Some extra points - first, I truly appreciate your trying to help. Much appreciated. Second, why does it take so many double clicks to get SpyBot to open ? First time gets an hourglass, and only the second time does it start up. Here is another Fixes file. not sure if it is different from what I attached earlier....
--- Report generated: 2013-10-26 17:36 ---
Delta.Toolbar: Settings (Registry value, fixed)
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Windows\AppInit_DLLs
Win32.PowerSpy.af: Class ID (Registry key, fixed)
HKEY_CLASSES_ROOT\CLSID\{586A6352-87C8-11D1-8BE3-0000F8754DA1}
Fake.MS.BHO: Configuration file (INI Delete, fixed)
Fake.MS.BHO: Configuration file (INI Delete, fixed)
Fake.MS.BHO: Configuration file (INI Delete, fixed)
Fake.MS.BHO: Configuration file (INI Delete, fixed)
Fake.MS.BHO: Configuration file (INI Delete, fixed)
Win32.Navi.c: Autorun settings (INI Delete, fixed)
Fraud.WinUpd.prc: User settings (Registry change, fixed)
HKEY_USERS\S-1-5-21-583907252-1383384898-1177238915-1004\Software\Microsoft\Windows\CurrentVersion\Explorer\Advanced\Hidden!=W=0
Win32.AnCamera: Settings (Registry key, fixed)
HKEY_CLASSES_ROOT\CLSID\{e17d4fc0-5564-11d1-83f2-00a0c90dc849}\
Win32.Undef: Settings (Registry change, fixed)
HKEY_LOCAL_MACHINE\SYSTEM\ControlSet001\Services\SharedAccess\Parameters\FirewallPolicy\StandardProfile\EnableFirewall!=W=1
Win32.Undef: Settings (Registry change, fixed)
HKEY_LOCAL_MACHINE\SYSTEM\ControlSet002\Services\SharedAccess\Parameters\FirewallPolicy\StandardProfile\EnableFirewall!=W=1
Fraud.XPDefender2013: Settings (Registry change, fixed)
HKEY_LOCAL_MACHINE\SOFTWARE\Clients\StartMenuInternet\FIREFOX.EXE\shell\open\command\
Fraud.XPDefender2013: Settings (Registry change, fixed)
HKEY_LOCAL_MACHINE\SOFTWARE\Clients\StartMenuInternet\FIREFOX.EXE\shell\safemode\command\
Fraud.XPDefender2013: Settings (Registry change, fixed)
HKEY_LOCAL_MACHINE\SOFTWARE\Clients\StartMenuInternet\IEXPLORE.EXE\shell\open\command\
Win32.Toolbar.DosPop: Settings (Registry value, fixing failed)
HKEY_USERS\.DEFAULT\Control Panel\Desktop\SCRNSAVE.EXE
Win32.Toolbar.DosPop: Settings (Registry value, fixed)
HKEY_USERS\S-1-5-19\Control Panel\Desktop\SCRNSAVE.EXE
Win32.Toolbar.DosPop: Settings (Registry value, fixed)
HKEY_USERS\S-1-5-20\Control Panel\Desktop\SCRNSAVE.EXE
Win32.Toolbar.DosPop: Settings (Registry value, fixed)
HKEY_USERS\S-1-5-21-583907252-1383384898-1177238915-1004\Control Panel\Desktop\SCRNSAVE.EXE
Win32.Toolbar.DosPop: Settings (Registry value, fixed)
HKEY_USERS\S-1-5-18\Control Panel\Desktop\SCRNSAVE.EXE
--- Spybot - Search & Destroy version: 1.4 (build: 20050523) ---
2005-05-31 blindman.exe (1.0.0.1)
2005-05-31 SpybotSD.exe (1.4.0.3)
2005-05-31 TeaTimer.exe (1.4.0.2)
2006-04-04 unins000.exe (51.41.0.0)
2005-05-31 Update.exe (1.4.0.0)
2007-05-23 advcheck.dll (1.5.3.0)
2005-05-31 aports.dll (2.1.0.0)
2005-05-31 borlndmm.dll (7.0.4.453)
2005-05-31 delphimm.dll (7.0.4.453)
2005-05-31 SDHelper.dll (1.4.0.0)
2007-07-31 Tools.dll (2.1.2.0)
2005-05-31 UnzDll.dll (1.73.1.1)
2005-05-31 ZipDll.dll (1.73.2.0)
2013-04-11 Includes\Adware.sbi (*)
2013-10-22 Includes\AdwareC.sbi (*)
2010-08-13 Includes\Cookies.sbi (*)
2012-11-14 Includes\Dialer.sbi (*)
2013-04-11 Includes\DialerC.sbi (*)
2013-04-11 Includes\HeavyDuty.sbi (*)
2012-11-14 Includes\Hijackers.sbi (*)
2013-04-11 Includes\HijackersC.sbi (*)
2013-10-16 Includes\iPhone.sbi (*)
2013-06-25 Includes\Keyloggers.sbi (*)
2013-04-11 Includes\KeyloggersC.sbi (*)
2013-05-29 Includes\Malware.sbi (*)
2013-10-22 Includes\MalwareC.sbi (*)
2003-03-16 Includes\plugin-ignore.ini
2012-11-14 Includes\PUPS.sbi (*)
2013-10-22 Includes\PUPSC.sbi (*)
2010-01-25 Includes\Revision.sbi (*)
2012-11-14 Includes\Security.sbi (*)
2013-04-11 Includes\SecurityC.sbi (*)
2008-06-03 Includes\Spybots.sbi (*)
2008-06-03 Includes\SpybotsC.sbi (*)
2013-05-22 Includes\Spyware.sbi (*)
2013-08-06 Includes\SpywareC.sbi (*)
2003-03-16 Includes\Temporary.sbi (*)
2012-11-19 Includes\Tracks.uti
2013-01-16 Includes\Trojans.sbi (*)
2013-08-13 Includes\TrojansC-02.sbi (*)
2013-10-07 Includes\TrojansC-03.sbi (*)
2013-10-22 Includes\TrojansC-04.sbi (*)
2009-01-21 Includes\TrojansC.sbi (*)
2007-06-06 Plugins\TCPIPAddress.dll
In case it is of any help/value, I should mention I still have the problem I ended up talking to the remote help people about. My Internet access stops suddenly, sometimes several times a day, yet the packets sent/received are still chugging away, even if I close FF and TBird. When that happens......sorry, I don't need to bother you with a unrelated problem.