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might i have a dodgy o/s?

i have inherited a pc from afriend who passed away so it is new to me. he never used the internet and i am experimenting using a dial up system. however, even tho i can connect to the web any downloads are failing because i'm told the system is outdated and yet in system properties the info shows the o/s as windows xp and is compatable with most downloads? can anyone help.
hey..you..in..brighouse..., August 2010