BKDR_Generic rootkit? HJT log posted

Thanks in advance for your help.

This is a friends computer so I do not know how the problem started.
Her complaint is that it is running slow and "acting funny."
It starts in selective startup mode and will not go back to normal.

I have run adaware and removed a few spyware things.

There was no antivirus on the computer. I tried to install AVG free and got error messages. It installed in spite on not being able to access all the files it needed. (Sorry I do not have the error message). AVG removed one virus. The problem was not resolved.

I tried trend micro housecall and it found BKDR_Generic but the removal process kept hanging up. It also found other adware but that couldn't be removed either. I downloaded a removal tool from trendmicro and that wouldn't work properly either. It gave me a error message that I was missing files.

I tried panda active scan. It found adware infections and 1 rootkit/hacking tool. No viruses.

I don't know what to do next because that free scan won't remove those things.