Malwarebytes removal of System Guard

Bad news.

See these lines from DDS's Find3m part of the report.

2009-02-20 07:07 5,632 a------- c:\windows\system32\cisvc.exe
2009-02-20 07:07 224,768 a------- c:\windows\system32\dmadmin.exe
2009-02-20 07:07 6,144 a------- c:\windows\system32\msdtc.exe
2009-02-20 06:17 14,336 a------- c:\windows\system32\svchost.exe
2009-02-20 06:16 65,536 a------- c:\windows\system32\HPZinw12.exe
2009-02-20 06:16 24,576 -------- c:\windows\system32\userinit.exe
2009-02-20 06:14 13,312 a------- c:\windows\system32\lsass.exe
2009-02-20 06:14 108,032 a------- c:\windows\system32\services.exe
2009-02-20 06:14 502,272 a------- c:\windows\system32\winlogon.exe

All these files are legit, and all are patched.
You have Virut, we can't do anything now.
I'm sorry, but this is game over.

You have to know this about Virut:

Your computer has multiple infections, including a backdoor. A backdoor gives intruders complete control of your computer, logs your keystrokes, steal personal information, etc.

You are strongly advised to do the following:

• Disconnect the computer from the Internet and from any networked computers until it is cleaned.
  
• Back up all your important data except programs. The programs can be reinstalled back from the original disc or from the Net.
  
• Call all your banks, financial institutions, credit card companies and inform them that you may be a victim of identity theft and put a watch on your accounts. If you don't mind the hassle, change all your account numbers.
  
• From a clean computer, change all your passwords (ISP login password, your email address(es) passwords, financial accounts, PayPal, eBay, Amazon, online groups and forums and any other online activities you carry out which require a username and password).
  

Do NOT change your passwords from this computer as the attacker will be able to get all the new passwords and transaction records.

Due to its backdoor functionality, your computer is very likely to have been compromised and there is no way that it can be trusted again. Many experts in the security community believe that once infected with this type of Trojan, the best course of action would be to do a reformat and reinstallation of the operating system (OS). However, if you do not have the resources to reinstall your OS and would like me to attempt to clean your machine, I will be happy to do so.

To help you understand more, please take some time to read the following articles:

What are Remote Access Trojans and why are they dangerous
How do I respond to a possible identity theft and how do I prevent it
When should do a reformat and reinstallation of my OS
Where to backup your files
How to backup your files in Windows XP
Restoring your backups

Short of a reformat, what other tools are available? I can do a factory restore on it, plus software re-install, but would rather not.

PS - I'm SANS GIAC Silver and CompTIA Security+ certified

Very well done.
So I assume you know (or somewhat anyway) about malware and how dangerous it can be.

A factory restore or full reformat is the only way out, Virut cannot be fixed.
See here:
http://miekiemoes.blogspot.com/2009/02/virut-and-other-file-infectors-throwing.html

Okay, re-install it is. Thanks!