Was able to bypass it somehow and run malwarebyes so heres that log.
Malwarebytes Anti-Malware 1.65.1.1000
www.malwarebytes.orgDatabase version: v2012.11.26.10
Windows XP Service Pack 3 x86 NTFS
Internet Explorer 7.0.5730.13
Jeremy Berger :: JEREMY [administrator]
11/26/2012 5:37:11 PM
mbam-log-2012-11-26 (17-37-11).txt
Scan type: Full scan (A:\|C:\|D:\|)
Scan options enabled: Memory | Startup | Registry | File System | Heuristics/Extra | Heuristics/Shuriken | PUP | PUM
Scan options disabled: P2P
Objects scanned: 338677
Time elapsed: 1 hour(s), 52 minute(s), 11 second(s)
Memory Processes Detected: 0
(No malicious items detected)
Memory Modules Detected: 0
(No malicious items detected)
Registry Keys Detected: 0
(No malicious items detected)
Registry Values Detected: 1
HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings|ProxyServer (PUM.Bad.Proxy) -> Data: http=127.0.0.1:5555 -> Quarantined and deleted successfully.
Registry Data Items Detected: 0
(No malicious items detected)
Folders Detected: 0
(No malicious items detected)
Files Detected: 4
C:\Documents and Settings\Jeremy Berger\Local Settings\Temp\wpbt0.dll (Trojan.FakeMS) -> Quarantined and deleted successfully.
C:\Documents and Settings\Jeremy Berger\Local Settings\Temporary Internet Files\Content.IE5\VL3U4SZ4\myfile[1].dll (Trojan.FakeMS) -> Quarantined and deleted successfully.
C:\Documents and Settings\All Users\Application Data\lsass.exe (Trojan.Delf) -> Quarantined and deleted successfully.
C:\Documents and Settings\Jeremy Berger\Start Menu\Programs\Startup\ctfmon.lnk (Trojan.Ransom.Gen) -> Quarantined and deleted successfully.
(end)