If XP starts to gives you kernel errors for your AV and ATI drivers that loads up just after you boot what has caused it?
and also another error
http://img249.echo.cx/my.php?image=untitled29si.png
Do I need to reinstall ASAP I want to but have a lot of backing up to do first, but with out reinstalling is there a way to fix this its weird it was doing this a lot a few days ago and took 4 reboots to get to windows and for the last few days I haven't had any problems. So whats up with it? I have checked for virus and spyware and anything odd running and it all appears to be ok.

assuming that you really don't have any nasties lurking or infected, you have services that are failing with kernel errors.... don't see any quick fixes here.
I'd suggest over the top install to patch thing up BUT if it were me, i'd slick the disk, format for a cln install and be more security minded the next time............sorry.

pc cillin house call and a updated AVG7 don't find anything no spyware around etc. so I think its clean. Its funny it only started happening when steam started failing after it updated.

EDIT: When steam was at its worst and I was playing hl2DM which is buggy at the worst stage I would get a blue screen and a reboot only happend once though, I wiped steam and reinstalled it and it doesn't do that now, but yeah windows didn’t seem to like it.

In addition to moon's advice, assuming no nasties, this could be caused by bad memory. Files get corrupted very badly by faulty memory. Run memtest (link below) to eliminate as a possibility. It runs from a floppy, so should not cause any further problems.

If it is a memory probelm, you would be in the same situation shortly after the reinstall (if you were able to reinstall) if you did not replace hte bad mem first.

checked the memory and it didn't give any errors