I have never had to reinstall windows and when you do you will lose anything you don't save. You have to copy your save files to a disk or flash drive. If you really think that will help there is a repair option in the widows installatiion console. The first step ask you if you want to install windows on c: drive hit enter and the second one will ask you about over writing or creating a new partition. At that point you can select your drive and hit "R" for the repair optioin. You will not lose anything that way.
Before doing this I would still check and recheck any running background programs (yahoo/msn messengers, ea link, etc.), temps, and maybe your vid card settings are too high. Looking at your log you have a lot of CRAP running. Turn off adobe, messengers, java script, ATi, ipod, real player, quicktime, itunes, microsoft office (in options), and any thing that says live update. You should have less than 40 processes running with XP. You have a lot of junk. You can turn them off by using the msconfig tool someone stated before. They will start and run properly when you choose to use them and they will update then. I have "fixed" computers with 75 processes running and they couldn't figure out why it took 5 minutes to start up and the internet was slow. The computer is working just to run all of that nonsence.
I also keep my vid setting on the medium setting on all but a few things. My card can run on high but it causes extra heat and latency problems (lag). Try setting monitor to 800x600 if you have an older monitor. Also you can start the game and alt+tab to desketop. ctrl+alt+del to the task manager and see what is running and using up your CPU and memory. Then if possible end task to shut it off. There may be many.
There are tons of things to do before you should resort to the 90min reinstall of windows that will wipe your HD and then the hours of setting up your computer to your satisfaction and installing games and programs, updates, patches, and drivers. First you can delete (is a must) and then reinstall drivers for NIC card, vid card, sound card, and any updates from your computers manufacturer.
If you can't or won't do what people here are suggesting, then you need to take it to a professional or just live with it. Maybe reistalling windows is a good thing but you don't need to reistall all of that crap. A gaming rig is for gaming and a home computer is for the other stuff.