You have scads of .xml files on your computer, it's a common markup language.
If denied access to Docs and Settings you should not mess with the item cos it's protected, so just leave it alone. Be safe, drag it back to the Keep column for now.
noebro, if you are willing make a copy of that file, open the copy in wordpad, or better yet notepad++, and paste the content in our private message, I can look at it and investigate some.
#boredatwork
EDIT: while I'm still not sure if it is Malware related or not, it seems to be related to Windows Update of some sort, but comes up a lot on people hijakthis logs early in the life of Windows XP. I do notice that the malware remover "combofix" seems to remove the file (Example Source: http://forums.pcpits...e/#entry1522179 )
I'm still worried that it shows in ccleaner, I don't have that file, but I do have it's sister file oWindowsUpdate[1].xml ) and that does not show up in ccleaner.
Just to make sure, are you running CCleanerenhanced or any Winapp2 entries? Can go into ccleaner, set it to save settings in INI file and attached the ini file (it's in the ccleaner folder) to the thread?