this site described how to fix the issue
http://channels.lockergnome.com/win...ndows_xp_after_you_remove_wsaupdaterexe.phtml
03.04.2005 @ 10:13 PM PT | Marc Erickson | Comment | Send to Friends
After you remove Wsaupdater.exe from BlazeFind by using Ad-Aware 6 Build 181 and reference file 01R314 02.06.2004 or 01R320 19.06.2004, you cannot log on to your Microsoft Windows XP-based computer.
Note: BlazeFind is a helper object for your Internet Explorer browser that redirects and changes your Internet Explorer settings.
CAUSE
Wsaupdater.exe is spyware that changes Userinit.exe, to Wsaupdater.exe in the registry. Ad-Aware by Lavasoft removes the Wsaupdater.exe file from the computer, but it cannot change the registry subkey back to Userinit.exe,. The registry subkey that is changed is:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon
Value: Userinit
Data: %Windir%\System32\Wsaupdater.exe
Note %windir% represents the location of the System32 folder. For example, if the location is C:\Windows\System32, the data would be:
C:\Windows\System32\Wsaupdater.exe.
The data should contain Userinit.exe, instead of Wsaupdater.exe. In the previous example, the data would be:
C:\Windows\System32\Userinit.exe,.
Note: The comma following the file path information is required.
RESOLUTION
Use the Recovery Console to copy Userinit.exe to Wsaupdater.exe to allow logon capability to be restored and to let you manually correct the registry data. To do this, follow these steps:
Microsoft also has a KB 82893