Removing the spyware that is causing the pop-ups is preferably to blocking pop-ups which are a symptom of malware infection. See the Anti-Spyware page for details of how to remove spyware.
Blocking pop-ups
Update Windows XP to SP2 to take advantage of the pop-up blocker in Internet Explorer, or use Firefox or Opera.
Internet Explorer in Windows XP Service Pack 2 has an effective pop-up blocker included.
There are also third-party pop-up blockers available. Although invaluable in the time of pre-XP SP2 Internet Explorer, the pop-up blocking feature of these products is now largely redundant, except for anybody determined to block even the most persistent of pop-ups, including some of the floating ads that still appear in web pages.
For an excellent list of pop-up blockers, both free and paid, and the opportunity to test your chosen pop-up blocker:
For information about pop-up ads, comparative test results, and test pages where you can find out if your chosen pop-up blocker blocks the pop-ups you don't want but allows the pop-ups you do:
For information about pop-up, and a caution about using pop-up blockers:
The Problem with Pop-Up Stoppers aumha.org

