Hi,
Thank you for posting here.
Regarding the Picasa issue, since we have limited resources about how it is designed and how it works, our help is limited; therefore, it is recommended that you go to Picasa Support for help:
Picasa Help
Note: Microsoft provides third-party contact information to help you find technical support. This contact information may change without notice. Microsoft does not guarantee the accuracy of this third-party contact information.
Meanwhile, I also noticed that you mentioned that Windows XP was infected with a virus, for this issue, it is better to go to our Windows XP forum for help.
Thanks. Hope the issues will be resolved soon.
Nicholas Li - MSFT