To change your seticon to start manually, click on Start, point to Settings, click on Control Panel. In the Control Panel, double-click on Administrative Tools, and double-click on Services. Find seticon in the Name list on the left side (you may wish to maximize the window to make it easier), right-click on it, click on Properties, find Startup Type and click on the dropdown arrow on the far right, select Manual. Click OK at the bottom, and close the services window. Caution: keep track of any changes you make in Services so you can undo them if problems arise.
Apparently WTSrv is a driver for a Genius WizardPen.
http://www.what-process.com/process-info.aspx?p=WTSrv.exe
And is probably related to WService.EXE
http://startup.iamnotageek.com/srch-WService.exe.html
I don't see anything else in your log -- and I'm not sure why you're having that error. Maybe someone else will have some suggestions.
To get more info on processes and recommended settings, check these sites:
http://startup.iamnotageek.com/
http://www.blackviper.com/WinXP/servicecfg.htm