...scanned the computer for spyware with MULTIPLE spyware removal tools. The Kernel32 error and a faulty CD player could simply be spyware or viruses. But it would sure help if we knew the EXACT error message you are receiving??

If you don't have a operational CD player or can't get online, you're going to have difficulty performing any effective downloads or troubleshooting techniques. They're generally larger than a floppy will hold. There is one small antivirus scanning tool that can be copied to a floppy which is at the link below. Simply copy the file from the floppy to the computer desktop, then run it..Although the tool doesn't find all viruses, it does detect some of the most serious.:

McAfee Stinger
http://vil.nai.com/vil/stinger/

Other than that, YES, you can download the "MSPWLUPD.EXE" file and copy it to a floppy disk. It's small enough to do exactly that. Here's the Knowledgebase link for that download:

http://support.microsoft.com/?kbid=187965

Hope this helps.

Grif