worm.netsky....plz help

When i start up my laptop i get a message (security warning) that comes up worm.netsky detected on my machine. This message goes on to tell me how its spread and what harm it will do to my computer!
I have ran malwarebytes and after the second time it says no viruses/threats detected. I also ran avg just to see if it would pick this up, but nothing!
I cant get online,use system restore,or any tools for that matter.
Oh i also get this HUGE box where my wallpaper should be saying my system is infected and has been stopped due to a serious malfunction....spywear activity has been detected!!!
Im super scared and have NO idea what to do! Ive been doing some reading but could used advice
Regards

Please make sure there is no proxy set by the malware:

Remove the Proxy setting in Internet Explorer and/or in FireFox.

In Internet Explorer

1. Tools Menu -> Internet Options -> Connections Tab ->Lan Settings > uncheck "use a proxy server" or reconfigure the Proxy server again in case you have set it previously.
   

In Firefox

1. Tools Menu -> Options... -> Advanced Tab -> Network Tab -> "Settings" under Connection > Choose "No Proxy"
   
2. Click the apply button and restart that computer in normal mode.
   

Can you get online now?

belahzur........your genius!!!
I can get online now!!
Should i now search for some sort of removal tool??
Why wouldnt my malwarebytes pick this virus up?
I appreciate your help so much!
Regards,
Jenn

MBAM can't remove the proxy, because it would be hard to detect what the proxt setting is, and what set it [you/family/malware, etc]

Please download the current version of HijackThis from HERE

• Double click and run the installer.
  
• It will install to C:\Program Files\Trend Micro\HijackThis\hijackthis.exe
  
• After installing, you should get the user agreement, press accept and Hijack This will run.
  
• Select Do a system scan and save a log file. This will open a notepad file of everything Hijack This found, copy and paste it back here.
  

Thanks again,
Here is the log file
Logfile of Trend Micro HijackThis v2.0.3 (BETA)
Scan saved at 9:29:13 PM, on 09/01/2010
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v8.00 (8.00.6001.18702)
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:\Program Files\AVG\AVG9\avgchsvx.exe
C:\Program Files\AVG\AVG9\avgrsx.exe
C:\Program Files\AVG\AVG9\avgcsrvx.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\Acer\Empowering Technology\ePerformance\MemCheck.exe
C:\Program Files\D-Link\D-Link RangeBooster N DWA-642\acs.exe
C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
C:\Program Files\AVG\AVG9\avgwdsvc.exe
C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\PIFSvc.exe
C:\Program Files\Microsoft\Search Enhancement Pack\SeaPort\SeaPort.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
C:\Program Files\AVG\AVG9\avgemc.exe
C:\Program Files\AVG\AVG9\avgnsx.exe
C:\Program Files\AVG\AVG9\avgcsrvx.exe
C:\WINDOWS\system32\wbem\wmiapsrv.exe
C:\WINDOWS\Explorer.EXE
C:\Acer\Empowering Technology\eRecovery\eRAgent.exe
C:\Acer\Empowering Technology\ePower\ePower_DMC.exe
C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
C:\PROGRA~1\LAUNCH~1\LManager.exe
C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\PIFSvc.exe
C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
C:\PROGRA~1\AVG\AVG9\avgtray.exe
C:\WINDOWS\system32\wbem\unsecapp.exe
C:\WINDOWS\RTHDCPL.EXE
C:\Program Files\CyberLink\PowerDVD\PDVDServ.exe
C:\WINDOWS\system32\smss32.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Windows Live\Messenger\MsnMsgr.Exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\D-Link\D-Link RangeBooster N DWA-642\wirelesscm.exe
C:\Acer\Empowering Technology\Acer.Empowering.Framework.Launcher.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\WINDOWS\system32\msiexec.exe
C:\Program Files\TrendMicro\HiJackThis\HiJackThis.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://ca.msn.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://us.rd.yahoo.com/customize/ie/defaults/sb/msgr9/*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
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,SearchAssistant =
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,CustomizeSearch =
R1 - HKCU\Software\Microsoft\Internet Explorer\SearchURL,(Default) = http://us.rd.yahoo.com/customize/ie/defaults/su/msgr9/*http://www.yahoo.com
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Local Page = \blank.htm
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = http=127.0.0.1:5555
R3 - URLSearchHook: AVG Security Toolbar BHO - {A3BC75A2-1F87-4686-AA43-5347D756017C} - C:\Program Files\AVG\AVG9\Toolbar\IEToolbar.dll
R3 - URLSearchHook: (no name) - *{CFBFAE00-17A6-11D0-99CB-00C04FD64497} - (no file)
R3 - URLSearchHook: (no name) - *{EF99BD32-C1FB-11D2-892F-0090271D4F88} - (no file)
F2 - REG:system.ini: UserInit=C:\WINDOWS\system32\winlogon32.exe
O2 - BHO: Yahoo! Toolbar Helper - {02478D38-C3F9-4EFB-9B51-7695ECA05670} - (no file)
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll (file missing)
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG9\avgssie.dll
O2 - BHO: Search Helper - {6EBF7485-159F-4bff-A14F-B9E3AAC4465B} - C:\Program Files\Microsoft\Search Enhancement Pack\Search Helper\SEPsearchhelperie.dll
O2 - BHO: (no name) - {72CCE03B-34B4-46BC-834D-E75475093D19} - C:\WINDOWS\system32\efcyxVMc.dll (file missing)
O2 - BHO: Windows Live Sign-in Helper - {9030D464-4C02-4ABF-8ECC-5164760863C6} - C:\Program Files\Common Files\Microsoft Shared\Windows Live\WindowsLiveLogin.dll
O2 - BHO: Windows Live Toolbar Helper - {E15A8DC0-8516-42A1-81EA-DC94EC1ACF10} - C:\Program Files\Windows Live\Toolbar\wltcore.dll
O3 - Toolbar: &Windows Live Toolbar - {21FA44EF-376D-4D53-9B0F-8A89D3229068} - C:\Program Files\Windows Live\Toolbar\wltcore.dll
O3 - Toolbar: AVG Security Toolbar - {CCC7A320-B3CA-4199-B1A6-9F516DD69829} - C:\Program Files\AVG\AVG9\Toolbar\IEToolbar.dll
O4 - HKLM\..\Run: [eRecoveryService] C:\Acer\Empowering Technology\eRecovery\eRAgent.exe
O4 - HKLM\..\Run: [ePower_DMC] C:\Acer\Empowering Technology\ePower\ePower_DMC.exe
O4 - HKLM\..\Run: [SynTPEnh] C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
O4 - HKLM\..\Run: [LManager] C:\PROGRA~1\LAUNCH~1\LManager.exe
O4 - HKLM\..\Run: [LaunchApp] Alaunch
O4 - HKLM\..\Run: [Boot] C:\Acer\Empowering Technology\ePower\Boot.exe
O4 - HKLM\..\Run: [Symantec PIF AlertEng] "C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\PIFSvc.exe" /a /m "C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\AlertEng.dll"
O4 - HKLM\..\Run: [avast!] C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
O4 - HKLM\..\Run: [ImageItEncrypt] C:\WINDOWS\system32\ImageItEncrypt.exe
O4 - HKLM\..\Run: [AVG9_TRAY] C:\PROGRA~1\AVG\AVG9\avgtray.exe
O4 - HKLM\..\Run: [RTHDCPL] RTHDCPL.EXE
O4 - HKLM\..\Run: [RemoteControl] "C:\Program Files\CyberLink\PowerDVD\PDVDServ.exe"
O4 - HKLM\..\Run: [PHIME2002ASync] C:\WINDOWS\system32\IME\TINTLGNT\TINTSETP.EXE /SYNC
O4 - HKLM\..\Run: [PHIME2002A] C:\WINDOWS\system32\IME\TINTLGNT\TINTSETP.EXE /IMEName
O4 - HKLM\..\Run: [ntiMUI] C:\Program Files\NewTech Infosystems\NTI CD & DVD-Maker 7\ntiMUI.exe
O4 - HKLM\..\Run: [MSPY2002] C:\WINDOWS\system32\IME\PINTLGNT\ImScInst.exe /SYNC
O4 - HKLM\..\Run: [KernelFaultCheck] %systemroot%\system32\dumprep 0 -k
O4 - HKLM\..\Run: [IMJPMIG8.1] "C:\WINDOWS\IME\imjp8_1\IMJPMIG.EXE" /Spoil /RemAdvDef /Migration32
O4 - HKLM\..\Run: [AzMixerSel] C:\Program Files\Realtek\InstallShield\AzMixerSel.exe
O4 - HKLM\..\Run: [Alcmtr] ALCMTR.EXE
O4 - HKLM\..\Run: [smss32.exe] C:\WINDOWS\system32\smss32.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [MsnMsgr] "C:\Program Files\Windows Live\Messenger\MsnMsgr.Exe" /background
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [ygua8e7yhuiesfha876yfauy8fe] C:\DOCUME~1\Brian\LOCALS~1\Temp\z7uam.exe
O4 - Global Startup: Wireless Connection Manager.lnk = C:\Program Files\D-Link\D-Link RangeBooster N DWA-642\wirelesscm.exe
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: Microsoft Office.lnk = C:\Program Files\Microsoft Office\Office10\OSA.EXE
O4 - Global Startup: Acer Empowering Technology.lnk = ?
O9 - Extra button: Blog This - {219C3416-8CB2-491a-A3C7-D9FCDDC9D600} - C:\Program Files\Windows Live\Writer\WriterBrowserExtension.dll
O9 - Extra 'Tools' menuitem: &Blog This in Windows Live Writer - {219C3416-8CB2-491a-A3C7-D9FCDDC9D600} - C:\Program Files\Windows Live\Writer\WriterBrowserExtension.dll
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
O16 - DPF: {9122D757-5A4F-4768-82C5-B4171D8556A7} (PhotoPickConvert Class) - http://appdirectory.messenger.msn.com/AppDirectory/P4Apps/PhotoSwap/PhtPkMSN.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\AVG9\avgpp.dll
O20 - Winlogon Notify: avgrsstarter - avgrsstx.dll (file missing)
O22 - SharedTaskScheduler: Browseui preloader - {438755C2-A8BA-11D1-B96B-00A0C90312E1} - C:\WINDOWS\system32\browseui.dll
O22 - SharedTaskScheduler: Component Categories cache daemon - {8C7461EF-2B13-11d2-BE35-3078302C2030} - C:\WINDOWS\system32\browseui.dll
O23 - Service: Memory Check Service (AcerMemUsageCheckService) - Acer Inc. - C:\Acer\Empowering Technology\ePerformance\MemCheck.exe
O23 - Service: Atheros Configuration Service (ACS) - Atheros - C:\Program Files\D-Link\D-Link RangeBooster N DWA-642\acs.exe
O23 - Service: Ati HotKey Poller - ATI Technologies Inc. - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: Automatic LiveUpdate Scheduler - Symantec Corporation - C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
O23 - Service: AVG Free E-mail Scanner (avg9emc) - AVG Technologies CZ, s.r.o. - C:\Program Files\AVG\AVG9\avgemc.exe
O23 - Service: AVG Free WatchDog (avg9wd) - AVG Technologies CZ, s.r.o. - C:\Program Files\AVG\AVG9\avgwdsvc.exe
O23 - Service: LiveUpdate - Symantec Corporation - C:\PROGRA~1\Symantec\LIVEUP~1\LUCOMS~1.EXE
O23 - Service: LiveUpdate Notice Service - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\PIFSvc.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\system32\HPZipm12.exe
O23 - Service: Symantec Core LC - Unknown owner - C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe

--
End of file - 10375 bytes

Hello.

• Open HijackThis
  
• Choose "Do a system scan only"
  
• Check the boxes in front of these lines:
  
  
  R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Local Page = \blank.htm
  R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = http=127.0.0.1:5555
  R3 - URLSearchHook: (no name) - *{CFBFAE00-17A6-11D0-99CB-00C04FD64497} - (no file)
  R3 - URLSearchHook: (no name) - *{EF99BD32-C1FB-11D2-892F-0090271D4F88} - (no file)
  F2 - REG:system.ini: UserInit=C:\WINDOWS\system32\winlogon32.exe
  O2 - BHO: Yahoo! Toolbar Helper - {02478D38-C3F9-4EFB-9B51-7695ECA05670} - (no file)
  O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll (file missing)
  O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG9\avgssie.dll
  O2 - BHO: (no name) - {72CCE03B-34B4-46BC-834D-E75475093D19} - C:\WINDOWS\system32\efcyxVMc.dll (file missing)
  O4 - HKLM\..\Run: [smss32.exe] C:\WINDOWS\system32\smss32.exe
  O4 - HKCU\..\Run: [ygua8e7yhuiesfha876yfauy8fe] C:\DOCUME~1\Brian\LOCALS~1\Temp\z7uam.exe
  O20 - Winlogon Notify: avgrsstarter - avgrsstx.dll (file missing)
  
  
  
  
• Press "Fix Checked"
  
• Close Hijack This.
  

Please download and run this tool.

Download Malwarebytes' Anti-Malware from Here

Double Click mbam-setup.exe to install the application.

• Make sure a checkmark is placed next to Update Malwarebytes' Anti-Malware and Launch Malwarebytes' Anti-Malware, then click Finish.
  
• If an update is found, it will download and install the latest version.
  
• Once the program has loaded, select "Perform Quick Scan", then click Scan.
  
• The scan may take some time to finish,so please be patient.
  
• When the scan is complete, click OK, then Show Results to view the results.
  
• Make sure that everything is checked, and click Remove Selected.
  
• When disinfection is completed, a log will open in Notepad and you may be prompted to Restart. (See Note)
  
• The log is automatically saved by MBAM and can be viewed by clicking the Logs tab in MBAM.
  

Note:
If MBAM encounters a file that is difficult to remove, you will be presented with 1 of 2 prompts.
Click OK to either and let MBAM proceed with the disinfection process.
If asked to restart the computer, please do so immediately.

Post the contents of the MBAM Log.

OMG Belahzur......amazing!!!
Problem fixed!!!
I cant believe how easily you were able to help me fix this. Your instructions were very clear and easy to follow!
Thank yo,u
Warm Regards,
Jenn

Please post the MBAM log.