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What is xpupdate.exe?
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Note: Be sure to always double check your spelling if you are concerned about spyware, as often spyware will use a very similar spelling of system processes or other common tasks.

Description: xpupdate.exe is a program that most likely was installed by you at one time or another after you purchased your computer. This program should be found on your hard drive in the following disk location shown below. Many spyware programs will often use similiar names so always check to make sure the hard drive location is correct for this file. This program is a well known spyware / trojan related program. Action should be taken immediately if you have this, you can terminate it in your tasklist and remove it from your startup list. Note that it will be found in your system directory, most likely as shown below, but you should scan to make sure its also not found in the system32 folder.

Common Path(s): C:\Windows\xpupdate.exe
Is it spyware? Yes. This is considered a spyware related program.    
Is it adware or popup related? No.
Is it a virus or trojan? Yes.
Would you recommend to remove it? Yes, I would remove pupdate.exe if it was on my computer. If you wish to do this, and you get an error message because you cannot access it, you should first terminate the task in your tasklist and then attempt to add it to your recycle bin again.
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