Slow Speed

I'm not 100% sure this should go in here, but i think so, we have a Dell Inspiron 1501, with Windows xp media edition SP2 (hardware = AMD turon 64 mobile, 1.99GHz. 896 Ram DDR. It was running fine, but suddenly it's now going extremely slow, everything from opening applications, the internet and even to notepad - you can finish a sentance before it's showing the first word.
There's nothing new installed that we're aware of. and Iexplore.exe is using 55.384 when you first open it,
I have a hijack this log:

A format is do-able but with the information on here it would take a week or two to transfer it to the external, it's taken me 10 minutes to get this written out, which shows the extent of the problem.

I have run adaware & AVG and cleared everything they found, but the problem still persists
Any advise on what's wrong and how to fix is greatly appreciated