Unknown Persistant Malware / No Google or Bing Allowed

While running a scan on my father in-laws computer, I found this nasty little program (PC Security 2011) attempting to do redirects and such. I used Malware & Avast! as his primary protection (no software firewall installed, other than the one for his router).

I figured I killed the SOB off, when I did 2 scans with each program above (normal and Safe mode), and used HJT to delete the other suspicious entries, but the damn things came back...not sure what else Im missing, so the geek is going to the other Geeks for help....HELP!...lol

Log files are below.