Hmm, I can't see anything untoward in either log...
especially if the problem persists after a clean install
of 5.12 Full/Pro (your log says you're using old 5.11) with none of those 3rd-party plugins present (in_usf.dll, gen_eq_hotkeys.dll, gen_wkc4.dll, gen_xfadedlg.dll)
Ok, so you're running WinXP with no service packs, which is never a good idea, but still... this shouldn't affect ripping.
The only processes in your list which could possibly be interfering are:
O23 - Service: Creative Service for CDROM Access
O23 - Service: LightScribeService Direct Disc Labeling Service
O4 - HKLM\..\Run: [DVDTray]
O4 - HKLM\..\Run: [DVDBitSet]
However, none of these are likely to be the cause, but you never know... especially if any of them lock the cd drive so that it can't be used by other apps (though that would then produce an error similar to Malaeus' problem, not yours). You can try stopping/disabling those two (non-essential) O23 services, one by one, via Control Panel > Admin Tools > Services, and see if it makes any difference. If you DO actually need either of them, then click "Stop" first and then change the Startup Type to 'manual' instead of 'disabled' (both will currently be set to 'automatic') c/o Properties.
If "read audio data using bundled sonic engine" is unchecked under:
Winamp > Prefs > CD Ripping > Ripping tab
then is wnaspi32
present in the Winamp root dir?
C:\Documents and Settings\Ernie\Desktop\Downloaded Files
<Artist> - <Album>\## - <Artist> - <Title>
Can you please confirm that the "Downloaded Files" folder already exists, and that cddb is automatically filling in the correct artist/album/title info prior to ripping (or if not, that you are doing this manually via: ML > Devices > CD-ROM Drive > right click in tracks pane (on the right-hand side) > Edit CD Info).
Can you also confirm whether you can get other apps to rip successfully, eg. CDex
Please start a new thread for your problem, including all the required information
But also read these threads from the FAQ
Error ripping track #1: Can't open decoder. Aborting
Your problem sounds more similar to the one in the 2nd link.