Hello, this may help.
We need to remove this service:
O23 - Service: Integrated Windows Authentication - Unknown owner - C:\Program Files\Common Files\System\MSIWA32.exe
==Go Start, run, type services.msc -and press Enter. Maximise the window and at foot select Extended tab, scroll to the specific service [Integrated Windows Authentication], rclick it, select properties. Write down the exact Service Name. Press Stop if it is highlighted [you may have to set the service to Disable first]. Close Services, now type this line into the run text box and press Enter:
sc delete "exact Service Name" - don't be silly now....
And then delete this file:
C:\Program Files\Common Files\System\MSIWA32.exe
If things are now back to normal update to SP2.