Hardware Update Wizard not working

I have recently installed Windows XP Professional and a strange problem occured, I am not able to run Hardware Update Wizard anymore. Whenever I try to reinstall drivers of some device (or install new drivers), I see only a very short blink and then Windows start to install driver automatically, without allowing me to specify a driver location. Usually, it ends up with installation of some generic, non-working driver.
When I look into System-Harware-Windows Update, I cannot choose any other option than No.3 (Never search for Windows Update).

I have tried to put these to registry (and later removing the whole key, but no change:
[HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\DriverSearching]
"DontSearchWindowsUpdate"=dword:00000000
"DontPromptForWindowsUpdate"=dword:00000000
"DontSearchCD"=dword:00000000
"DontSearchFloppies"=dword:00000000

I have also tried these settings, but nothing helped either:

[-HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Group Policy Objects\LocalUser\Software\Microsoft\Windows\CurrentVersion\Policies\WindowsUpdate\DisableWindowsUpdateAccess]

[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer]
"NoWindowsUpdate"=dword:00000000

[HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer]
"NoWindowsUpdate"=dword:00000000

[HKEY_LOCAL_MACHINE\Software\Policies\Microsoft\Windows\WindowsUpdate\AU]
"NoAutoUpdate"=dword:00000000
"AUOptions"=dword:00000000

[-HKEY_LOCAL_MACHINE\Software\Policies\Microsoft\Windows\WindowsUpdate]
[-HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\WindowsUpdate]

[-HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer]
"NoDevMgrUpdate"=dword:00000000

[HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Main]
"NoUpdateCheck"=dword:00000000

[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\WindowsUpdate]
"DisableWindowsUpdateAccess"=dword:00000000

[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer]
"NoWindowsUpdate"=dword:00000000


I have checked all policy settings in GPEDIT.MSC, but everything seems to be fine.

Any idea, what else I could try? I really dont want to reinstall Windows again....