There is three problems that has showed up after I installed the SP1 RC.

1. My virus scanner which is AVG reports that my virus database is outdated which is not true.

2. I get an error whenever I try to connect to synchronize my time with the internet but my connection is fine.

3. Cant open up the control panel at all.

What could be causing all of this?

SP1 is a pre-release version of software. Microsoft make one or two release candidates RC1, RC2, etc available to customers in advance of the official release. A release candidate is like a "sneak preview" of the final release with the goal of ironing out any serious bugs may yet surface in the "wild" before the general public uses it to give them time to be fixed.

There can be hundreds of reasons why and they cant be addressed because of the Release Candidate nature of the product, If they are affecting the use of your computer just uninstall it as its for testing purposes only, for example AVG would install SP1 to identify any fix any clichés or bugs before the final release.