Antivirus system pro and maybe trojan horse removal

The computer that I am referring to cannot connect to the internet but before that happened we ended up with multiple problems.

1) Antivirus System Pro - keeps popping up saying that I'm infected
2) Internet explorer keeps opening tabs to viagra.com porno.com and adult.com
3) I keep getting a box saying 'Security warning' - the file wuacult.exe or wmiprese.exe or others - do i want to activate my anti-virus software - yes or no
4) A balloon - I think from the Resident shield of AVG - says Windows security alert - you are infected - click here to scan

I tried to do a system restore, but could not for some reason.
I am trying to follow the 'before you post' checklist on a computer which can connect to the internet and downloaded jre-6u16-windows-i586 but when trying to get JavaRa it said I cannot access it because I don't have privileges.

I am a bit confused about what security warnings are real and which are fake, so don't know what to follow.

I can't open AVG. When I try, it says application cannot be executed. The file avgui.exe is infected..... Do I want to activate my anti-virus software now

Also, if you tell me to download files/applications onto a thumb drive, do I need to be careful about going from the infected computer back to the uninfected computer.

Hello,

Skip to posting the HijackThis log.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 10:41:19 AM, on 8/22/2009
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16876)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxWatch10.exe
C:\PROGRA~1\AVG\AVG8\avgrsx.exe
C:\PROGRA~1\AVG\AVG8\avgnsx.exe
C:\WINDOWS\System32\tcpsvcs.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Viewpoint\Common\ViewpointService.exe
C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxMediaDB10.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\ASUS\Probe\AsusProb.exe
C:\WINDOWS\SYSTEM32\USRmlnkA.exe
C:\WINDOWS\System32\spool\DRIVERS\W32X86\3\E_S4I2D1.EXE
C:\WINDOWS\SM1BG.EXE
C:\WINDOWS\system32\spool\drivers\w32x86\3\hpztsb09.exe
C:\Program Files\HP\hpcoretech\hpcmpmgr.exe
C:\WINDOWS\SYSTEM32\USRshutA.exe
C:\WINDOWS\SYSTEM32\USRmlnkA.exe
C:\Program Files\Hewlett-Packard\HP Software Update\HPWuSchd2.exe
C:\WINDOWS\system32\hphmon05.exe
C:\WINDOWS\system32\WDBtnMgr.exe
C:\Program Files\Viewpoint\Viewpoint Manager\ViewMgr.exe
C:\Program Files\Support.com\bin\tgcmd.exe
C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxWatchTray10.exe
C:\Program Files\Roxio\CinePlayer\DMXLauncher.exe
C:\Program Files\Microsoft IntelliPoint\ipoint.exe
C:\PROGRA~1\AVG\AVG8\avgtray.exe
C:\WINDOWS\system32\HPZipm12.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Microsoft IntelliPoint\dpupdchk.exe
C:\Program Files\Adobe\Acrobat 6.0\Distillr\acrotray.exe
C:\WINDOWS\system32\VirtualExpander\VirtualExpander.exe
C:\Program Files\ibxxft\oibosysguard.exe
C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\CPSHelpRunner10.exe
C:\WINDOWS\system32\devldr32.exe
C:\Program Files\AVG\AVG8\avgscanx.exe
C:\Program Files\AVG\AVG8\avgcsrvx.exe
G:\winlogon.exe.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Bar = http://red.clientapps.yahoo.com/customize/ie/defaults/sb/ymsgr6/*http://www.yahoo.com/ext/search/search.html
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.hotmail.com/
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Bar = http://red.clientapps.yahoo.com/customize/ie/defaults/sb/ymsgr6/*http://www.yahoo.com/ext/search/search.html
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKCU\Software\Microsoft\Internet Explorer\SearchURL,(Default) = http://red.clientapps.yahoo.com/customize/ie/defaults/su/ymsgr6/*http://www.yahoo.com
R3 - URLSearchHook: AVG Security Toolbar BHO - {A3BC75A2-1F87-4686-AA43-5347D756017C} - C:\Program Files\AVG\AVG8\Toolbar\IEToolbar.dll
R3 - URLSearchHook: (no name) - *{CFBFAE00-17A6-11D0-99CB-00C04FD64497} - (no file)
O1 - Hosts: ::1 localhost
O1 - Hosts: 91.206.201.8 osadwarekill.microsoft.com
O1 - Hosts: 91.206.201.8 osadwarekill.com
O1 - Hosts: 91.206.201.8 www.osadwarekill.com
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelper.dll
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - C:\Program Files\Google\Google Toolbar\GoogleToolbar.dll
O2 - BHO: AcroIEToolbarHelper Class - {AE7CD045-E861-484f-8273-0445EE161910} - C:\Program Files\Adobe\Acrobat 6.0\Acrobat\AcroIEFavClient.dll
O2 - BHO: Google Toolbar Notifier BHO - {AF69DE43-7D58-4638-B6FA-CE66B5AD205D} - C:\Program Files\Google\GoogleToolbarNotifier\5.1.1309.3572\swg.dll
O2 - BHO: Google Dictionary Compression sdch - {C84D72FE-E17D-4195-BB24-76C02E2E7C4E} - C:\Program Files\Google\Google Toolbar\Component\fastsearch_A8904FB862BD9564.dll
O3 - Toolbar: Adobe PDF - {47833539-D0C5-4125-9FA8-0819E2EAAC93} - C:\Program Files\Adobe\Acrobat 6.0\Acrobat\AcroIEFavClient.dll
O3 - Toolbar: Easy-WebPrint - {327C2873-E90D-4c37-AA9D-10AC9BABA46C} - C:\Program Files\Canon\Easy-WebPrint\Toolband.dll
O3 - Toolbar: Google Toolbar - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - C:\Program Files\Google\Google Toolbar\GoogleToolbar.dll
O3 - Toolbar: AVG Security Toolbar - {CCC7A320-B3CA-4199-B1A6-9F516DD69829} - C:\Program Files\AVG\AVG8\Toolbar\IEToolbar.dll
O4 - HKLM\..\Run: [ASUS Probe] C:\Program Files\ASUS\Probe\AsusProb.exe
O4 - HKLM\..\Run: [USRpdA] C:\WINDOWS\SYSTEM32\USRmlnkA.exe RunServices \Device\3cpipe-USRpdA
O4 - HKLM\..\Run: [EPSON Stylus C84 Series] C:\WINDOWS\System32\spool\DRIVERS\W32X86\3\E_S4I2D1.EXE /P23 "EPSON Stylus C84 Series" /O5 "LPT1:" /M "Stylus C84"
O4 - HKLM\..\Run: [SM1BG] C:\WINDOWS\SM1BG.EXE
O4 - HKLM\..\Run: [HPDJ Taskbar Utility] C:\WINDOWS\system32\spool\drivers\w32x86\3\hpztsb09.exe
O4 - HKLM\..\Run: [HPHUPD05] C:\Program Files\Hewlett-Packard\{5372B9A6-6E51-4f90-9B40-E0A3B8475C4E}\hphupd05.exe
O4 - HKLM\..\Run: [HP Component Manager] "C:\Program Files\HP\hpcoretech\hpcmpmgr.exe"
O4 - HKLM\..\Run: [HP Software Update] "C:\Program Files\Hewlett-Packard\HP Software Update\HPWuSchd2.exe"
O4 - HKLM\..\Run: [HPHmon05] C:\WINDOWS\system32\hphmon05.exe
O4 - HKLM\..\Run: [WD Button Manager] WDBtnMgr.exe
O4 - HKLM\..\Run: [Auto EPSON Stylus C84 Series on JENNYSCOMPUTER] C:\WINDOWS\System32\spool\DRIVERS\W32X86\3\E_S4I2D1.EXE /P46 "Auto EPSON Stylus C84 Series on JENNYSCOMPUTER" /O25 "\\JENNYSCOMPUTER\Printer2" /M "Stylus C84"
O4 - HKLM\..\Run: [PRISMSVR.EXE] "C:\WINDOWS\system32\PRISMSVR.EXE" /APPLY
O4 - HKLM\..\Run: [tgcmd] "C:\Program Files\Support.com\bin\tgcmd.exe" /server /startmonitor /deaf
O4 - HKLM\..\Run: [RoxWatchTray] "C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxWatchTray10.exe"
O4 - HKLM\..\Run: [DMXLauncher] "C:\Program Files\Roxio\CinePlayer\DMXLauncher.exe"
O4 - HKLM\..\Run: [IntelliPoint] "C:\Program Files\Microsoft IntelliPoint\ipoint.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [AVG8_TRAY] C:\PROGRA~1\AVG\AVG8\avgtray.exe
O4 - HKLM\..\Run: [system tool] C:\Program Files\ibxxft\oibosysguard.exe
O4 - HKCU\..\Run: [Yahoo! Pager] C:\Program Files\Yahoo!\Messenger\ypager.exe -quiet
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [LaunchList] C:\Program Files\Pinnacle\Studio 11\LaunchList2.exe
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe
O4 - HKCU\..\Run: [AROReminder] C:\Program Files\Advanced Registry Optimizer\aro.exe -rem
O4 - HKCU\..\Run: [system tool] C:\Program Files\ibxxft\oibosysguard.exe
O4 - HKUS\S-1-5-18\..\Run: [ALUAlert] C:\Program Files\Symantec\LiveUpdate\ALUNotify.exe (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [ALUAlert] C:\Program Files\Symantec\LiveUpdate\ALUNotify.exe (User 'Default user')
O4 - Startup: VirtualExpander.lnk = C:\WINDOWS\system32\VirtualExpander\VirtualExpander.exe
O4 - Global Startup: Acrobat Assistant.lnk = C:\Program Files\Adobe\Acrobat 6.0\Distillr\acrotray.exe
O4 - Global Startup: Microsoft Office.lnk = C:\Program Files\Microsoft Office\Office\OSA9.EXE
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O10 - Unknown file in Winsock LSP: c:\windows\system32\nwprovau.dll
O16 - DPF: {1239CC52-59EF-4DFA-8C61-90FFA846DF7E} (Musicnotes Viewer) - http://www.musicnotes.com/download/mnviewer.cab
O16 - DPF: {406B5949-7190-4245-91A9-30A17DE16AD0} (Snapfish Activia) - http://www.costcophotocenter.com/CostcoActivia.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://v5.windowsupdate.microsoft.com/v5consumer/V5Controls/en/x86/client/wuweb_site.cab?1094502827875
O16 - DPF: {6A344D34-5231-452A-8A57-D064AC9B7862} (Symantec Download Manager) - https://webdl.symantec.com/activex/symdlmgr.cab
O16 - DPF: {6E5E167B-1566-4316-B27F-0DDAB3484CF7} (Image Uploader Control) - http://www.winkflash.com/photo/loaders/ImageUploader4.cab
O16 - DPF: {B9191F79-5613-4C76-AA2A-398534BB8999} - http://us.dl1.yimg.com/download.yahoo.com/dl/installs/suite/yautocomplete.cab
O16 - DPF: {C68F9105-04FD-4B48-B6CC-2A076F711C35} (HpodPCFileCtrl2 Class) - file://D:\MEMDISC\ALBUM_A\VIEW\PLUGIN\HPODPCFC.CAB
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - http://fpdownload2.macromedia.com/get/shockwave/cabs/flash/swflash.cab
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG8\avgpp.dll
O18 - Filter: x-sdch - {B1759355-3EEC-4C1E-B0F1-B719FE26E377} - C:\Program Files\Google\Google Toolbar\Component\fastsearch_A8904FB862BD9564.dll
O20 - Winlogon Notify: avgrsstarter - C:\WINDOWS\SYSTEM32\avgrsstx.dll
O23 - Service: Ati HotKey Poller - ATI Technologies Inc. - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: ATI Smart - Unknown owner - C:\WINDOWS\system32\ati2sgag.exe
O23 - Service: AVG Free8 WatchDog (avg8wd) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
O23 - Service: Google Software Updater (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\system32\HPZipm12.exe
O23 - Service: Roxio UPnP Renderer 10 - Sonic Solutions - C:\Program Files\Roxio\Digital Home 10\RoxioUPnPRenderer10.exe
O23 - Service: Roxio Upnp Server 10 - Sonic Solutions - C:\Program Files\Roxio\Digital Home 10\RoxioUpnpService10.exe
O23 - Service: LiveShare P2P Server 10 (RoxLiveShare10) - Sonic Solutions - C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxLiveShare10.exe
O23 - Service: RoxMediaDB10 - Sonic Solutions - C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxMediaDB10.exe
O23 - Service: Roxio Hard Drive Watcher 10 (RoxWatch10) - Sonic Solutions - C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxWatch10.exe
O23 - Service: SessionLauncher - Unknown owner - C:\DOCUME~1\Erin\LOCALS~1\Temp\DX9\SessionLauncher.exe (file missing)
O23 - Service: Symantec Core LC - Unknown owner - C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
O23 - Service: Viewpoint Manager Service - Viewpoint Corporation - C:\Program Files\Viewpoint\Common\ViewpointService.exe

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