36hrs of hell, please take a look at my logs

I'm new to this site, but big thanks in advance.

System info:
Windows XP Professional SP3
AMD x2 CPU
DFI NF4 MB

I first noticed an issue on Sunday 1/11. While using Firefox, new firefox browsers would randomly pop-up for advertisements. Also, my computer became painfully slow and surfing slowed to a crawl, even timing out once in a while. When I unistalled firefox, the pop-up issue stopped for a while. However, shortly after I starting using IE7 it started to act strange as well. It would not pop up new windows, but it would direct me to different sites than what I had clicked on. For example, it took me to Dex a couple of times.

After I started having issues, I downloaded Spybot and Adaware and did some scans. Both applications, said they found stuff so I had them fix it. I also installed Mcafee Security Suite as it is free from my work. I originally started playing with HJT and remove some suspect entries. Shortly after all of this, the desktop changed to say my computer was infected and I got a pop-up telling me I needed to do something about my infected computer. I just closed the window by hitting the "X".

I don't remember anything in particular or a specific time my computer started acting weird as it was my wife who originally called me at work to tell me about it. However, I followed the Malware remove guide on these forums and it found quite a bit of stuff.

 

Last two logs...