Yes but why overload the system with a dozen different things tod it already has a hard enough time running your own apps
Basically my philosphy is this, (I have been virus and spayware free for 12 months now, virus free for 2 years)
Run Automatic updates religiously
Run an alternative browser, evn firefox is getting a bit popular, this cure the spyware/trojan bit
Run AVG free AV and let it scan regularily however keep a manual ey on its updates
If You run any server softwre IIS / mdaemon Check the Logs regularuily (More for nerds)
Disable the guest account
Rename the administrator account
Dont uuse outlook express use thunderbird
Use strong passwords alphanumeric 6/7 characters long
Dont install or let the kids install crap software of the net
Uninstall all unused software including the microsft stuff (Ie the
games) this has the bonus of cutting the No of needed auto updates
Run the XP firewll, and make sure fie and print etal are blocked from the outside world
My advice is if you feel that the XP firewall aint good enough, then go
and get a hardware router something like like a draytek that can do
packet inspection etc and use that, however your biggest risk is
scripts on errant website and emails, so that why i do all my little
Oh yes BACKUP ALL THE TIME a usb disk and 250gb drive are cheap now,
get one and use the XP's builtin backup software (search microsoft for
XP ntbackup) and take it too work or your mums and leave it there
all the protective software in the world wont help if thing gets
What I follow (and never had spyware or a virus) is:
Use a hardware firewall (faster than software and more secure)
Use AVG free edition
Use Firefox, not IE wherever you can.
Use Thunderbird or other for an email client.
Using a hardware firewall will free up resources on your PC and can't
be broken,switched off, corrupted by anything you do. They are pretty
cheap these days and well worth it (if you are on Boradband of course).
I use the Sygate Firewall, which is a free Download HERE
Although hardware firewalls are good at blocking traffic from the Internet they treat all traffic from the local newtork to the Internet as safe. So if a Trojan/keylogger has been installed on your computer via a web page or email attachment it will just let it through. Software firewalls will block these.
So can software firewalls with the right exploit clicked on. Anything can be gotten round when it's single layer, you'd have to go overkill to be "very" safe, and you'll always be very slightly at risk no matter what you do... The risk just goes flying down the more measures you take! 
How hard is it to configure all of the above to work on a home network? I have three computers that share files with the main computer and one of the problems i normally find with firewalls is that they prevent access to the computer that holds all the files.
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