IE and outlook won't work

I have just spent three hours trying to get a mates IE and outlook to connect to the internet, virus software etc. will update no worries ,but outlook wont connect and IE wont connect to any sites ,just comes up can't find server, it is trying to connect to site 127.0.0.1 no matter what address is typed in, says can't find search.
Any ideas?

 

forgot to add he is running xp home with sp2, IE 5 i think.

Also tried msn explorer and could not connect using my account and to make him an account it only had pay to use options.

 

Another thing, tried turning off the xp firewall and it said it was off in one window, and on in another.

 

Looks like a reformat is in order as looks like one that has no answer.

 

well before you format, make sure it is not some sort of a virial infection, it could also be a configuration problem but since you mentioned certain programs' update function works that means quite likely your system got jacked by a malware. If you haven't re-format the system yet, try reading and applying the instructions mentioned on the 'Spyware Specific' section of this forum....it is long and time consuming but this way you would know better hat the problem was or wasn' t.

Things to check for: make sure both the IE and the Outlook connection settings are correct, if it is a direct connection to the cable/DSL modem or to a router acting like a DHCP, the connection should be set to automatic or at least make sure no proxy connection was configured, also for IE try emptying out Temporary Internet Files Folder: Tools > Internet Options > Delete > check the 'all offline content' box too.

 

Thanks Turcoloco.

I installed avg7, spybot, adaware, spyware blaster and ran some other programs, he wasnt running anything before I did this so might be the cause.

Will catch up with him tonight and see if he found a solution, he was contacting his isp for help when I left.

If we cant work it out ,will install mozilla firefox and see what happens.

 

Spoke to him and they got his browser working now got to get his email working, apparently is spyware related.

 

had another look today, ran more spyware programs.
IE stopped working again, fixed it by unticking use proxy in settings.
Outlook still not working so installed thunderbird from mozilla and that is now his defualt email and does work.
Found spyware DSO exploit 5 entries which had to remove twice, as they got back in.
At least it is working now