Completely baffled, thwarted by unknown malware

Yes I have read the "Read Me First" instructions and followed to the best of this laptops ability.

Trying to fix a friend's laptop that has an unknown virus/malware.

I am actually unable to do virtually ANYTHING in the "Read Me First" instructions.

Here is why... This malware/virus terminates ANY program I have tried to use to scan/log/read/search... EVEN just going to a website with name of the program closes IE. For example, I went to file hippo. Navigating the internet is easy, no problems. Type in "Hijack This" or "AVG" or any of the other programs listed in "Read Me First" and as soon as File Hippo goes to the corresponding page, IE immediately closes (same for Cnet and Fileplanet). The same happens with even just typing in said programs in Google for alternate sites. As soon as a list of sites appears, IE immediately closes. Parent sites for said programs also close upon arriving.

I then use my PC and dl said programs. Put them on a flash drive, plug into laptop to move programs to the laptop. That worked easily enough. I cannot run/install them. As soon as I double click to run/install them they terminate within seconds. Hell...I try to open JUST the folder that Hijack This is in and the folder opens for seconds and closes immediately.

I'm not sure if this helps but I have 1 clue as to what might be happening and I cannot find info on it...

I open the task manager, go to services to see what services are running.

I double click one of the programs I am trying use/install. It pops up in services and almost immediately I see this show up:

IS-#####.tmp

The ##### being what seems to be random numbers and letters as I have done it multiple times and they are always different.

There are 3 programs that DO work, but they were already installed. None of them find anything.

Spybot S&D (updated as of yesterday), Ad-Aware SE (updated as of yesterday) and McAfee (SERIOUSLY outdated, more than 1 year)

I am about to tell her that her best option is to reformat and re-install windows because I am at my wits end.

ANY ideas????