Problem with computer.

Ok, i wasn't sure where to post this because this is spyware and virus involved.
*note everything i did was after the instructions on http://forums.majorgeeks.com/showthread.php?t=35407 and http://forums.majorgeeks.com/showthread.php?t=38752

Problem #1 - I notice that i recieved these folders in my C:\Problem Files all named with P2P programs (eg. Kazaa, Warez) (i didn't have/use them) and inside was just a folder named "download" and had hundreds of files name similar to this "Red Alert 2 No CD Crack (scanned with NA 2005)". So I did a complete virus + security at Trend Micro and it found about 5000 infected files. I quickly looked it over and not all the infected files were related to the problem i stated. So i cleaned/deleted all. Next day, i find many of my .exe files to programs such as RealPlayer, 3dMark05, Winrar and many more. Problem is i'm not sure if i got rid of the virus/whatever caused this and not sure to check if it infected any important .exe files. Also "Program Updates" doesn't seem to work either... Not sure if this is linked to my Windows Update..Also all those folders with those files tend to return after a few restarts.

Problem #2 - There is this annoying blue search bar that appears whenever i launch IE. I've tried HJThis to remove it, i've tried many spyware cleaners and no luck. I've tried a lot of ways and none have worked. I have posted a screenshot.

Problem #3 - In my HJThis scans, i removed certain things that should not be there, and they keep returning after i restart. My system restore is off when i perform the scan. I have also posted my HJThis log.

My Computer: AMD Semperon 2600 1.85ghz, Windows XP Pro SP2, 512mb ram, Radeon Saphhire 9200 128mb video card.

*Note: Everything i did was with System Restore OFF.

Any help on anyone of these problems will be appriciated. Thanks in advance.

 

*Bump