I dont like to auto up date XP, so I turned off the auto update setting completly. However whenever i boot up or sometimes while using the pc, i get that little red sheild telling me about it. Im wondering if there is some way to disable this feature: also if there is a way to disable windows balloons, that would be great too.

thanks in advance....

HOW TO: Disable Notification Area Balloon Tips in Windows XP

http://support.microsoft.com/kb/307729

As to Auto Update set your settings via Control Panel > Security Center to notify but not download nor install.