UPDATE:
I think that I figured out my problem. I had Antivirus Plus on here that was driving me nuts. I found your post on the malware removal guide for the program and did what you said to do. I ran the scan and removed the problems. Now my desktop background is restored and I ran the scan again and it came up with no more problems.
Let me know if you need me to post the logfile or if you think its solved.
Thanks for having this site.