Molehill out of Mountain, FP, nonsense, what? TT_Spyware

Ladies and Gents,
I always try to be on top of security and malware removal on my computer. For the last few months I've been using a new machine with Vista, which is a new operating system for me. BTW Vaio laptop.

A couple days ago, Spyware Doctor (installed as part of Google Pack) told me I have two possible website hijacks. I haven't noticed any problems browsing, etc. I use Firefox with noscript, etc.etc.

The names given, 2x were:
Spyware.Possible_Website_Hijack
Type Bad Host Entry,
Risk High,
Infection 127.0.0.1, www.spywareinfo.com

And the source apparently TT_Spyware

When I told it to fix the infection, it did its thing and then told me that the infection had not been removed. Not that it couldn't be removed, just hadn't been removed. Again and again.

I have run umpteen scans since then. Spybot, Adaware, AVG, nothing zilch nadda.

Malwarebytes, Superantispyware, with hidden files enabled and UAC off. Zilch. Absolutely not a thing malicious showing.

As an added bonus, while freaking out somewhat (google search said that TT_Spyware may be a Chinese Keylogger.......or a Turbotax cookie) I enabled heuristic scanning with Spyware Doctor. While trying to get rid of the TT_Spyware several times, the "suspicious" behavior of one of my installed programs, WinDVD was rechecked automatically at some point and the Doctor zapped WinDVD. Fantastic. Only way to get it back is with a restore disk that is a thousand miles away right now.

So, bottom line: Is this a nonsensical false positive, over-reaction, chest puffing show of potency from the good Doctor? Have I been wasting my tiime with him for these last many months, or is he on to something that nobody else can detect?

I'm running a Spyware Doctor scan again right now. I have every confidence that he'll tell me that I've still got the dangerous infection.

Should I kick the good Doctor in the eggs, set him on fire and send him packing, or is he the one genius in a world full of idiots who is able to find a genuine malicious threat?