MBR Rootkit / Win XP Freezes on Startup

OS: Win XP SP 3

Initial symptoms: About a week ago, I noticed that after a Google Search, any click would take me to some fishy pages rather than following the link I clicked. "What a pain, I'll have to fix that when I have more time" I said. Next time, my computer froze on startup (After the progress bar animation, at the "Welcome" screen). It's hanging after loading mup.sys, showing lots and lots of failed driver load attempts in the bootlog.

Status: The machine will only boot in safemode. I used MSCONFIG to disable everything (startup items, services, win.ini, system.ini) and it still won't start up unless I enable /SAFEBOOT for boot.ini.

I ran the parts of the malware removal read/run first process that I could do in safemode and found an MBR Rootkit. I'm hoping that killing this will fix my problems. I'm attaching the MBAM and RR malware removal reports. Please advise on my next step (i.e. how to remove the rootkit - can I just use RootRepeal for that?)

Thanks very much!

- Crunchie