Hi there lets clear the edsloader problem first
That error is related to eDataSecurity Loader from Acer Empowering Technology.
Go to Start>RUN
Type in msconfig
Click OK
Go to the Startup tab
Find an entry for eDSloader.exe, usually located in C:\Acer\Empowering Technology\eDataSecurity
Uncheck that item
Click Apply, OK
Reboot
See if it still comes up
NEXT
I will remove the Babylon toolbar and clear the temp files along with security loopholes
Warning This fix is only relevant for this system and no other, using on another computer may cause problems
Be advised that when the fix commences it will shut down all running processes and you may lose the desktop and icons, they will return on reboot
Run OTL
[*]Under the Custom Scans/Fixes box at the bottom, paste in the following
https://dl.dropbox.com/u/73555776/OTL_Fix.GIF
:OTL
IE - HKU\S-1-5-21-1097535190-3505522486-456637137-1000\SOFTWARE\Microsoft\Internet Explorer\Main,Start Page = http://search.babylon.com/?affID=113959&tt=010712_8&babsrc=HP_ss&mntrId=0c484371000000000000001dd93b4b78
IE - HKU\S-1-5-21-1097535190-3505522486-456637137-1000\..\SearchScopes\{0ECDF796-C2DC-4d79-A620-CCE0C0A66CC9}: "URL" = http://search.babylon.com/?q={searchTerms}&affID=113959&tt=010712_8&babsrc=SP_ss&mntrId=0c484371000000000000001dd93b4b78
FF - prefs.js..browser.search.defaultenginename: "Search the web (Babylon)"
FF - prefs.js..browser.search.order.1: "Search the web (Babylon)"
FF - prefs.js..browser.search.selectedEngine: "Search the web (Babylon)"
FF - prefs.js..extensions.enabledItems: {CAFEEFAC-0015-0000-0014-ABCDEFFEDCBA}:5.0.14
FF - prefs.js..extensions.enabledItems: {CAFEEFAC-0016-0000-0023-ABCDEFFEDCBA}:6.0.23
FF - prefs.js..extensions.enabledItems: {CAFEEFAC-0016-0000-0024-ABCDEFFEDCBA}:6.0.24
FF - prefs.js..extensions.enabledItems: {CAFEEFAC-0016-0000-0026-ABCDEFFEDCBA}:6.0.26
[2012/07/08 14:34:34 | 000,002,351 | ---- | M] () -- C:\Program Files\mozilla firefox\searchplugins\babylon.xml
O3 - HKU\S-1-5-21-1097535190-3505522486-456637137-1000\..\Toolbar\ShellBrowser: (no name) - {5CBE3B7C-1E47-477E-A7DD-396DB0476E29} - No CLSID value found.
O3 - HKU\S-1-5-21-1097535190-3505522486-456637137-1000\..\Toolbar\WebBrowser: (no name) - {21FA44EF-376D-4D53-9B0F-8A89D3229068} - No CLSID value found.
O16 - DPF: {CAFEEFAC-0015-0000-0014-ABCDEFFEDCBA} http://java.sun.com/update/1.5.0/jinstall-1_5_0_14-windows-i586.cab (Java Plug-in 1.5.0_14)
O16 - DPF: {CAFEEFAC-0016-0000-0003-ABCDEFFEDCBA} http://java.sun.com/update/1.6.0/jinstall-1_6_0_03-windows-i586.cab (Java Plug-in 1.6.0_03)
O16 - DPF: {CAFEEFAC-0016-0000-0005-ABCDEFFEDCBA} http://java.sun.com/update/1.6.0/jinstall-1_6_0_05-windows-i586.cab (Java Plug-in 1.6.0_05)
O16 - DPF: {CAFEEFAC-0016-0000-0007-ABCDEFFEDCBA} http://java.sun.com/update/1.6.0/jinstall-1_6_0_07-windows-i586.cab (Java Plug-in 1.6.0_07)
[2012/07/08 14:33:58 | 000,000,000 | ---D | C] -- C:\Users\Rickie1953\AppData\Roaming\Babylon
[2012/07/08 14:33:58 | 000,000,000 | ---D | C] -- C:\ProgramData\Babylon
:Files
C:\Users\Rickie1953\AppData\Local\Google\Chrome\User Data\Default\Extensions\dhkplhfnhceodhffomolpfigojocbpcb
:Commands
[purity]
[resethosts]
[emptytemp]
[CREATERESTOREPOINT]
[Reboot]
[*]Then click the
Run Fix button at the top
[*]Let the program run unhindered, reboot the PC when it is done
[*]Open OTL again and click the
Quick Scan button. Post the log it produces in your next reply.
UPDATE PROBLEM
OTL is reporting that SP2 is installed, but lets confirm this
Download and run the readiness tool http://go.microsoft.com/fwlink/?LinkId=167357
Once done the retry windows updates