A scan of my PC shows that there are multiple entries of svchost.exe that are infected with the "New Win32" virus. It either said that termination had failed, or I should restart and scan my PC.
After some searching, I found the best way I was going to (hopefully) resolve this is by posting up my hijackthis log here. If you need additional information I will try to post it as quickly as possible.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 22:55:19, on 06/07/2009
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16850)
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:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\ehome\ehtray.exe
C:\windows\system\hpsysdrv.exe
C:\WINDOWS\system32\hphmon06.exe
C:\HP\KBD\KBD.EXE
C:\WINDOWS\system32\CTHELPER.EXE
C:\Program Files\Creative\SBAudigy2ZS\DVDAudio\CTDVDDet.EXE
C:\WINDOWS\system32\spool\drivers\w32x86\3\hpztsb09.exe
C:\Program Files\HP\hpcoretech\hpcmpmgr.exe
C:\WINDOWS\system32\hphmon05.exe
C:\Program Files\Portrait Displays\Pivot Software\wpctrl.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\Java\jre6\bin\jusched.exe
C:\Program Files\McAfee.com\Agent\mcagent.exe
C:\windows\pp10.exe
C:\Program Files\McAfee\MBK\McAfeeDataBackup.exe
C:\Program Files\Messenger\msmsgs.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Portrait Displays\Pivot Software\floater.exe
C:\Program Files\DNA\btdna.exe
C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
C:\Program Files\Common Files\Portrait Displays\Shared\dtsrvc.exe
C:\WINDOWS\eHome\ehSched.exe
C:\Program Files\McAfee\SiteAdvisor\McSACore.exe
C:\PROGRA~1\McAfee\MSC\mcmscsvc.exe
c:\PROGRA~1\COMMON~1\mcafee\mna\mcnasvc.exe
c:\PROGRA~1\COMMON~1\mcafee\mcproxy\mcproxy.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcshield.exe
C:\Program Files\McAfee\MPF\MPFSrv.exe
C:\Program Files\McAfee\MSK\MskSrver.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcsysmon.exe
c:\PROGRA~1\mcafee\VIRUSS~1\mcvsshld.exe
c:\PROGRA~1\mcafee\msc\mcshell.exe
C:\Documents and Settings\James\My Documents\HiJackThis.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcods.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.ask.com/?o=101764&l=dis
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://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iesearch&locale=EN_GB&c=Q404&bd=pavilion&pf=desktop
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://uk.search.yahoo.com/search?fr=mcafee&p=%s
R1 - HKCU\Software\Microsoft\Internet Connection Wizard,ShellNext = http://go.microsoft.com/fwlink/?LinkId=74005
R3 - URLSearchHook: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\PROGRA~1\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: &Yahoo! Toolbar Helper - {02478D38-C3F9-4efb-9B51-7695ECA05670} - C:\PROGRA~1\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: AcroIEHelperStub - {18DF081C-E8AD-4283-A596-FA578C2EBDC3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelperShim.dll
O2 - BHO: AskBar BHO - {201f27d4-3704-41d6-89c1-aa35e39143ed} - (no file)
O2 - BHO: McAfee Phishing Filter - {27B4851A-3207-45A2-B947-BE8AFE6163AB} - c:\PROGRA~1\mcafee\msk\mskapbho.dll
O2 - BHO: Spybot-S&D IE Protection - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: Click-to-Call BHO - {5C255C8A-E604-49b4-9D64-90988571CECB} - C:\Program Files\Windows Live\Messenger\wlchtc.dll
O2 - BHO: scriptproxy - {7DB2D5A0-7241-4E79-B68D-6309F01C5231} - C:\Program Files\McAfee\VirusScan\scriptsn.dll
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: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - C:\Program Files\Google\Google Toolbar\GoogleToolbar.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: McAfee SiteAdvisor BHO - {B164E929-A1B6-4A06-B104-2CD0E90A88FF} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O2 - BHO: Google Dictionary Compression sdch - {C84D72FE-E17D-4195-BB24-76C02E2E7C4E} - C:\Program Files\Google\Google Toolbar\Component\fastsearch_A8904FB862BD9564.dll
O2 - BHO: Java(tm) Plug-In 2 SSV Helper - {DBC80044-A445-435b-BC74-9C25C1C588A9} - C:\Program Files\Java\jre6\bin\jp2ssv.dll
O2 - BHO: JQSIEStartDetectorImpl - {E7E6F031-17CE-4C07-BC86-EABFE594F69C} - C:\Program Files\Java\jre6\lib\deploy\jqs\ie\jqs_plugin.dll
O2 - BHO: SingleInstance Class - {FDAD4DA1-61A2-4FD8-9C17-86F7AC245081} - C:\PROGRA~1\Yahoo!\Companion\Installs\cpn\YTSingleInstance.dll
O3 - Toolbar: HP view - {B2847E28-5D7D-4DEB-8B67-05D28BCF79F5} - c:\Program Files\HP\Digital Imaging\bin\HPDTLK02.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\PROGRA~1\Yahoo!\Companion\Installs\cpn\yt.dll
O3 - Toolbar: (no name) - {3041d03e-fd4b-44e0-b742-2d9b88305f98} - (no file)
O3 - Toolbar: McAfee SiteAdvisor Toolbar - {0EBBBE48-BAD4-4B4C-8E5A-516ABECAE064} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O3 - Toolbar: Google Toolbar - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - C:\Program Files\Google\Google Toolbar\GoogleToolbar.dll
O4 - HKLM\..\Run: [ehTray] C:\WINDOWS\ehome\ehtray.exe
O4 - HKLM\..\Run: [hpsysdrv] c:\windows\system\hpsysdrv.exe
O4 - HKLM\..\Run: [HPHUPD06] c:\Program Files\HP\{AAC4FC36-8F89-4587-8DD3-EBC57C83374D}\hphupd06.exe
O4 - HKLM\..\Run: [HPHmon06] C:\WINDOWS\system32\hphmon06.exe
O4 - HKLM\..\Run: [KBD] C:\HP\KBD\KBD.EXE
O4 - HKLM\..\Run: [CTHelper] CTHELPER.EXE
O4 - HKLM\..\Run: [CTDVDDET] C:\Program Files\Creative\SBAudigy2ZS\DVDAudio\CTDVDDet.EXE
O4 - HKLM\..\Run: [HPDJ Taskbar Utility] C:\WINDOWS\system32\spool\drivers\w32x86\3\hpztsb09.exe
O4 - HKLM\..\Run: [HPHUPD05] C:\Program Files\HP\{5372B9A6-6E51-4f90-9B40-E0A3B8475C4E}\hphupd05.exe
O4 - HKLM\..\Run: [HP Component Manager] "C:\Program Files\HP\hpcoretech\hpcmpmgr.exe"
O4 - HKLM\..\Run: [HPHmon05] C:\WINDOWS\system32\hphmon05.exe
O4 - HKLM\..\Run: [PivotSoftware] "C:\Program Files\Portrait Displays\Pivot Software\wpctrl.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files\Adobe\Reader 9.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre6\bin\jusched.exe"
O4 - HKLM\..\Run: [mcagent_exe] "C:\Program Files\McAfee.com\Agent\mcagent.exe" /runkey
O4 - HKLM\..\Run: [McENUI] C:\PROGRA~1\McAfee\MHN\McENUI.exe /hide
O4 - HKLM\..\Run: [StartCCC] "C:\Program Files\ATI Technologies\ATI.ACE\Core-Static\CLIStart.exe" MSRun
O4 - HKLM\..\Run: [pp] C:\windows\pp10.exe
O4 - HKLM\..\Run: [McAfee Backup] "C:\Program Files\McAfee\MBK\McAfeeDataBackup.exe"
O4 - HKLM\..\Run: [sysldtray] C:\windows\ld12.exe
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.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: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [Creative Live! Cam Manager] "C:\Program Files\Creative\Creative Live! Cam\Live! Cam Manager\CTLCMgr.exe"
O4 - HKCU\..\Run: [BitTorrent DNA] "C:\Program Files\DNA\btdna.exe"
O4 - HKCU\..\Run: [Acme.PCHButton] C:\PROGRA~1\HELPAN~1\Pavilion\XPEWWBF4\plugin\bin\PCHButton.exe
O4 - HKUS\S-1-5-19\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User '?')
O4 - HKUS\S-1-5-20\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User '?')
O4 - HKUS\S-1-5-21-3620680706-2900572870-3499953897-1008\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe (User '?')
O4 - HKUS\S-1-5-21-3620680706-2900572870-3499953897-1008\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe (User '?')
O4 - HKUS\S-1-5-21-3620680706-2900572870-3499953897-1008\..\Run: [Creative Live! Cam Manager] "C:\Program Files\Creative\Creative Live! Cam\Live! Cam Manager\CTLCMgr.exe" (User '?')
O4 - HKUS\S-1-5-21-3620680706-2900572870-3499953897-1008\..\Run: [BitTorrent DNA] "C:\Program Files\DNA\btdna.exe" (User '?')
O4 - HKUS\S-1-5-21-3620680706-2900572870-3499953897-1008\..\Run: [Acme.PCHButton] C:\PROGRA~1\HELPAN~1\Pavilion\XPEWWBF4\plugin\bin\PCHButton.exe (User '?')
O4 - S-1-5-21-3620680706-2900572870-3499953897-1008 Startup: OpenOffice.org 2.4.lnk = C:\Program Files\OpenOffice.org 2.4\program\quickstart.exe (User '?')
O4 - Startup: OpenOffice.org 2.4.lnk = C:\Program Files\OpenOffice.org 2.4\program\quickstart.exe
O9 - Extra button: (no name) - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O9 - Extra 'Tools' menuitem: Spybot - Search & Destroy Configuration - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.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: {20A60F0D-9AFA-4515-A0FD-83BD84642501} (Checkers Class) - http://messenger.zone.msn.com/binary/msgrchkr.cab56986.cab
O16 - DPF: {5D6F45B3-9043-443D-A792-115447494D24} (UnoCtrl Class) - http://messenger.zone.msn.com/EN-GB/a-UNO1/GAME_UNO1.cab
O16 - DPF: {C3F79A2B-B9B4-4A66-B012-3EE46475B072} (MessengerStatsClient Class) - http://messenger.zone.msn.com/binary/MessengerStatsPAClient.cab56907.cab
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - http://fpdownload2.macromedia.com/get/shockwave/cabs/flash/swflash.cab
O18 - Protocol: sacore - {5513F07E-936B-4E52-9B00-067394E91CC5} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O18 - Protocol: skype4com - {FFC8B962-9B40-4DFF-9458-1830C7DD7F5D} - C:\PROGRA~1\COMMON~1\Skype\SKYPE4~1.DLL
O18 - Filter: x-sdch - {B1759355-3EEC-4C1E-B0F1-B719FE26E377} - C:\Program Files\Google\Google Toolbar\Component\fastsearch_A8904FB862BD9564.dll
O23 - Service: Apple Mobile Device - Apple Inc. - C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
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: Bonjour Service - Apple Inc. - C:\Program Files\Bonjour\mDNSResponder.exe
O23 - Service: Creative Service for CDROM Access - Unknown owner - C:\WINDOWS\system32\CTSvcCDA.EXE (file missing)
O23 - Service: Portrait Displays Display Tune Service (DTSRVC) - Unknown owner - C:\Program Files\Common Files\Portrait Displays\Shared\dtsrvc.exe
O23 - Service: Media Center Receiver Service (ehRecvr) - Unknown owner - C:\WINDOWS\eHome\ehRecvr.exe (file missing)
O23 - Service: Google Software Updater (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Java Quick Starter (JavaQuickStarterService) - Sun Microsystems, Inc. - C:\Program Files\Java\jre6\bin\jqs.exe
O23 - Service: MBackMonitor - McAfee - C:\Program Files\McAfee\MBK\MBackMonitor.exe
O23 - Service: McAfee SiteAdvisor Service - Unknown owner - C:\Program Files\McAfee\SiteAdvisor\McSACore.exe
O23 - Service: McAfee Services (mcmscsvc) - McAfee, Inc. - C:\PROGRA~1\McAfee\MSC\mcmscsvc.exe
O23 - Service: McAfee Network Agent (McNASvc) - McAfee, Inc. - c:\PROGRA~1\COMMON~1\mcafee\mna\mcnasvc.exe
O23 - Service: McAfee Scanner (McODS) - McAfee, Inc. - C:\PROGRA~1\McAfee\VIRUSS~1\mcods.exe
O23 - Service: McAfee Proxy Service (McProxy) - McAfee, Inc. - c:\PROGRA~1\COMMON~1\mcafee\mcproxy\mcproxy.exe
O23 - Service: McAfee Real-time Scanner (McShield) - McAfee, Inc. - C:\PROGRA~1\McAfee\VIRUSS~1\mcshield.exe
O23 - Service: McAfee SystemGuards (McSysmon) - McAfee, Inc. - C:\PROGRA~1\McAfee\VIRUSS~1\mcsysmon.exe
O23 - Service: McAfee Personal Firewall Service (MpfService) - McAfee, Inc. - C:\Program Files\McAfee\MPF\MPFSrv.exe
O23 - Service: McAfee Anti-Spam Service (MSK80Service) - McAfee, Inc. - C:\Program Files\McAfee\MSK\MskSrver.exe
O23 - Service: Remote Desktop Help Session Manager (RDSessMgr) - Unknown owner - C:\WINDOWS\system32\sessmgr.exe (file missing)
O23 - Service: Remote Procedure Call (RPC) Locator (RpcLocator) - Unknown owner - C:\WINDOWS\system32\locator.exe (file missing)
O23 - Service: Performance Logs and Alerts (SysmonLog) - Unknown owner - C:\WINDOWS\system32\smlogsvc.exe (file missing)
O23 - Service: WMDM PMSP Service - Unknown owner - C:\WINDOWS\system32\MsPMSPSv.exe (file missing)

A scan of my PC shows...

a scan with what program?
I see at least one, maybe two serious infections on the computer.
Turn OFF this program until further notice:
BitTorrent DNA

Do the following:
Please download Malwarebytes' Anti-Malware (MBA-M) to your Desktop.

* DoubleClick mbam-setup.exe and follow the prompts to install MBA-M.
* Be 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 full scan, then click Scan.
* When the scan is complete, click OK, then Show Results to view the results.
* Be sure that everything is checked, and click Remove Selected.
* When MBA-M finishes, Notepad will open with the log. Please save it where you can find it easily. The log can also be opened by going to Start > All Programs > Malwarebytes' Anti-Malware > Logs > log-date.txt.

Reboot the computer

Run a new HJT scan and save the log. Post back here with the MBA-M log and the new HJT log.

Apologies, I used McAfee to scan my PC, and BitTorrent is removed.
However, I am encountering a problem with MBA-M which does not seem to be resolved through reinstalling the program or rebooting the PC. They both appeared whilst I was installing MBA-M and also trying to run it after installation: "vbAccelerator SGrid II Control Run-time error '0' ", and " Malwarebyte's Anti-Malware Run-time error '440' Automation error. " As a result the program will not start up.

That error usually indicates the installation was either incomplete or may have been altered by some program. The recommended solution is to uninstall, reboot your computer and try to reinstall.

Also then try this from the MBA-M forums concerning difficulties when using McAfee:
* Open the VirusScan Console and disable the Access Protection module and then install MBAM
* After installation, register and update MBAM and then enable the MBAM Protection Module
* Within the VirusScan Console under Access Protection configure the following rules
o Anti-virus Standard ProtectionPrevent user rights policies from being altered
add mbam.exe to the exclusions
Common Standard Protection
o Protect Mozilla & FireFox files and settings
add mbam.exe to the exclusions
o Protect Internet Explorer settings
add mbam.exe to the exclusions
o Prevent installation of Browser Helper Objects and Shell Extensions
add mbam.exe to the exclusions
o Protect network settings
add mbam.exe to the exclusions
Common Maximum Protection
o Prevent programs registering to autorun
add mbam.exe, mbamgui.exe to the exclusions
o Prevent programs registering as a service
add mbam.exe, mbam-dor.exe, mbamgui.exe, mbamservice.exe, services.exe to the exclusions
* From within the VirusScan Console re-enable the Access Protection module
* Double click the MBAM icon in the task tray and do a Quick Scan to confirm there are no longer any freezing issues.

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