Malware (or virus???) Help--"System Error #1752"

Ok, so, here's the deal....this began two days ago...

Whenever I start my desktop computer, my old background disappears, is replaced by a new, blue background with white writing that says, "Warning! Spyware threat detected! System error #1752" It then goes on the list my IP, internet browser, and compy specs and provides some links to some 'spyware prevention software', which I assume are bogus. Unfortunately, my boyfriend was the first to discover this problem, followed the links and downloaded some of the 'trial' software...I was able to remove this with install/uninstall programs (I think?? Or hope??)

First, I followed instructions 1-7, with the following exceptions...

Instead of running Defender, I ran Counterspy, even though I have SP2. I was unable to run Defender because I could not be 'verified'--I think this has something to do with the fact that, at the time, I did not have ActiveX installed??

I was unable to run the online virus scanning programs, because INTERNET EXPLORER KEEPS CRASHING (that just started happening tonight)--I get the error mssg 'needs to close'...I can provide more details on the exact error message later, if necessary. I am posting right now from my laptop. However, I did run Symantec, and it quarantined several items from my system restore, although, now that I go to find and list them for you, they're no longer listed under quarantine--not sure what happened to them?! I will attach the counterspy log.

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I am attaching my HJT log--I'm assuming that this is the only thing that will work, since all the other programs failed. I've been working on this for two days, and am very frustrated, but you guys are THE BEST. Truly lifesavers. I thank you ahead of time for ANY assistance you can provide!

 

Ok, I ran Ewido, got the HiJack install list, re-ran HJT, and am posting a new HJT log....also, if I recall correctly, the object symantec previously detected and quarantined (although I can't find it in quarantine now) had 'bloodhound' in the name...thanks again!!

 

So, while perusing the internet, I came across this page, http://messages.toolbar.yahoo.com/t...2&mid=-1&tof=6&m=te&rt=2&off=1&p=DNbnjDDdWw--,

with the following mssg:

>You gotta love people who go to all the trouble setting some damned thing >like this up, trying to pose as M$, and they can't even spell correctly. After >I got done wishing an imaginative death on the site that did this, I realized >it was just a background HTML page making use of the M$ "feature" that >lets you stick a webpage as your background. Go to the top of the screen >and a small dropdown will appear. Click on the options, customize your >desktop, and remove the background HTML that's been put there.


So, that solved my 'system error' problem

Now, however, I can't use internet explorer (I'm posting from my laptop, which is not infected, and transferring the log files with my jump drive)....within a few seconds of opening IE WHILE CONNECTED TO THE INTERNET, I get "Internet Explorer has encountered a problem and needs to close"....I click on 'more details', and the error signature reads:

AppName: iexplore.exe AppVer: 6.0.2900.2180 ModName: kernel32.dll
ModVer: 5.1.2600.2180 Offset: 0001eb33

I do not get this mssg if my internet cable is unplugged.

So, I ran everything as you described, except for Panda Scan (because I can't access the internet from my desktop compy, due to the problems with IE.) Logs are attached. I'm wondering if something happened to IE while I was 'cleaning' and if this could be fixed with a simple system restore???