Hi, i've been frantically searching for the fix for this "new poly win32" virus as detected by both an AVG scan and a McAfee scan. I have new versions of both the softwares. I've looked through your vault and found similar problems with solutions but nothing fits my needs. I've run a scan using HijackThis and here's the following log
Scan saved at 1:12:06 PM, on 10/29/2008
Platform: Windows XP SP3, v.3264 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.5730.0013)

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\csrss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\mdm.exe
C:\Program Files\Common Files\Nero\Nero BackItUp 4\NBService.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\Program Files\Spyware Doctor\pctsAuxs.exe
C:\WINDOWS\system32\RUNDLL32.EXE
C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe
C:\Program Files\Spyware Doctor\pctsTray.exe
C:\WINDOWS\system32\ctfmon.exe
C:\WINDOWS\System32\alg.exe
C:\Program Files\Spyware Doctor\pctsSvc.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\PROGRA~1\McAfee\MSC\mcmscsvc.exe
c:\PROGRA~1\mcafee.com\agent\mcagent.exe
c:\PROGRA~1\COMMON~1\mcafee\mna\mcnasvc.exe
C:\Program Files\McAfee\MPF\MPFSrv.exe
c:\PROGRA~1\COMMON~1\mcafee\mcproxy\mcproxy.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcsysmon.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcshield.exe
C:\Program Files\McAfee\SiteAdvisor\McSACore.exe
C:\WINDOWS\system32\rundll32.exe
C:\Documents and Settings\rajath\Desktop\HijackThis.exe
c:\PROGRA~1\mcafee\VIRUSS~1\mcvsshld.exe

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 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 =
R3 - URLSearchHook: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: Yahoo! Toolbar Helper - {02478D38-C3F9-4EFB-9B51-7695ECA05670} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelper.dll
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll (file missing)
O2 - BHO: Groove GFS Browser Helper - {72853161-30C5-4D22-B7F9-0BBC1D38A37E} - C:\PROGRA~1\MICROS~2\Office12\GRA8E1~1.DLL
O2 - BHO: scriptproxy - {7DB2D5A0-7241-4E79-B68D-6309F01C5231} - C:\Program Files\McAfee\VirusScan\scriptsn.dll
O2 - BHO: McAfee SiteAdvisor BHO - {B164E929-A1B6-4A06-B104-2CD0E90A88FF} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O3 - Toolbar: (no name) - {BA52B914-B692-46c4-B683-905236F6F655} - (no file)
O3 - Toolbar: McAfee SiteAdvisor Toolbar - {0EBBBE48-BAD4-4B4C-8E5A-516ABECAE064} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [NvMediaCenter] RUNDLL32.EXE C:\WINDOWS\system32\NvMcTray.dll,NvTaskbarInit
O4 - HKLM\..\Run: [Google Desktop Search] "C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe" /startup
O4 - HKLM\..\Run: [ISTray] "C:\Program Files\Spyware Doctor\pctsTray.exe"
O4 - HKLM\..\Run: [mcagent_exe] "C:\Program Files\McAfee.com\Agent\mcagent.exe" /runkey
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\Office12\EXCEL.EXE/3000
O9 - Extra button: Send to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~2\Office12\ONBttnIE.dll
O9 - Extra 'Tools' menuitem: S&end to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~2\Office12\ONBttnIE.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\Office12\REFIEBAR.DLL
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe (file missing)
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe (file missing)
O11 - Options group: [INTERNATIONAL] International*
O11 - Options group: [TABS] Tabbed Browsing
O16 - DPF: {30528230-99f7-4bb4-88d8-fa1d4f56a2ab} (YInstStarter Class) - C:\Program Files\Yahoo!\Common\yinsthelper.dll
O17 - HKLM\System\CCS\Services\Tcpip\..\{B65A8B41-AB2B-46D9-A7C0-FF4A24F50907}: NameServer = 218.248.240.208,218.248.240.135
O18 - Protocol: grooveLocalGWS - {88FED34C-F0CA-4636-A375-3CB6248B04CD} - C:\PROGRA~1\MICROS~2\Office12\GR99D3~1.DLL
O18 - Protocol: ms-help - {314111C7-A502-11D2-BBCA-00C04F8EC294} - C:\Program Files\Common Files\Microsoft Shared\Help\hxds.dll
O18 - Protocol: sacore - {5513F07E-936B-4E52-9B00-067394E91CC5} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O18 - Filter hijack: text/xml - {807563E5-5146-11D5-A672-00B0D022E945} - C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSOXMLMF.DLL
O20 - AppInit_DLLs: AVGRSSTX.DLL C:\PROGRA~1\GOOGLE\GOOGLE~1\GOEC62~1.DLL
O20 - Winlogon Notify: dimsntfy - %SystemRoot%\System32\dimsntfy.dll (file missing)
O20 - Winlogon Notify: WgaLogon - C:\WINDOWS\SYSTEM32\WgaLogon.dll
O21 - SSODL: WPDShServiceObj - {AAA288BA-9A4C-45B0-95D7-94D524869DB5} - C:\WINDOWS\system32\WPDShServiceObj.dll
O23 - Service: McAfee Application Installer Cleanup (0186581225231253) (0186581225231253mcinstcleanup) - McAfee, Inc. - C:\DOCUME~1\rajath\LOCALS~1\Temp\018658~1.EXE
O23 - Service: Google Desktop Manager 5.8.809.23506 (GoogleDesktopManager-092308-165331) - Google - C:\Program Files\Google\Google Desktop Search\GoogleDesktop.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: Nero BackItUp Scheduler 4.0 - Nero AG - C:\Program Files\Common Files\Nero\Nero BackItUp 4\NBService.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: PC Tools Auxiliary Service (sdAuxService) - PC Tools - C:\Program Files\Spyware Doctor\pctsAuxs.exe
O23 - Service: PC Tools Security Service (sdCoreService) - PC Tools - C:\Program Files\Spyware Doctor\pctsSvc.exe
O23 - Service: Windows Media Player Network Sharing Service (WMPNetworkSvc) - Unknown owner - C:\Program Files\Windows Media Player\WMPNetwk.exe (file missing)

I've been unable to use several windows programs such as task manager probably because the necessary files have been quarantined. Another thing is that this happened a day after reinstalling windows, which i did because of another virus problem. Please take some time and have a look at this problem. Thank you

You are running two anti-virus programs on one computer. This is an absolute NO-NO. Please TOTALLY uninstall one of these.
What version of HiJackThis are you using? You didn't post that top line of the scan which tells us the version of HJT. Current version is 2.0.2 If you are running the older version then delete it and download the new one.
Also 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.

Please Run the ESET Online Scanner and attach the ScanLog with your post for assistance.

* You will need to use Internet Explorer to to complete this scan.
* You will need to temporarily Disable your current Anti-virus program.
* Be sure the option to Remove found threats is checked at this timeand the option to Scan unwanted applications is Checked.
* When you have completed that scan, a scanlog ought to have been created and located at C:\Program Files\EsetOnlineScanner\log.txt. Please post that log for us as directed below.

After uninstalling one of those anti-virus programs and running the above two scans then run a NEW HJT scan and save the log

Post back here with all logs requested.

I updated my mcafee antivirus and a scan after that showed all the previously detected "new win32 virus" now as "virut.a" and successfully removed the infections. After that i ran a Mbam full scan and the following log was generated:

Malwarebytes' Anti-Malware 1.30
Database version: 1349
Windows 5.1.2600 Service Pack 3, v.3264

11/1/2008 6:15:11 PM
mbam-log-2008-11-01 (18-15-11).txt

Scan type: Full Scan (C:\|D:\|E:\|F:\|G:\|)
Objects scanned: 130536
Time elapsed: 2 hour(s), 50 minute(s), 16 second(s)

Memory Processes Infected: 0
Memory Modules Infected: 0
Registry Keys Infected: 0
Registry Values Infected: 0
Registry Data Items Infected: 0
Folders Infected: 0
Files Infected: 1

Memory Processes Infected:
(No malicious items detected)

Memory Modules Infected:
(No malicious items detected)

Registry Keys Infected:
(No malicious items detected)

Registry Values Infected:
(No malicious items detected)

Registry Data Items Infected:
(No malicious items detected)

Folders Infected:
(No malicious items detected)

Files Infected:
G:\System Volume Information\_restore{767C21F3-247D-416F-9F9C-ED7BDCC680C6}\RP43\A0005072.EXE (Trojan.Agent) -> Quarantined and deleted successfully.

I fixed the detected infections and ran an online eset scan which detected no errors.
Finally i ran a hijackthis scan and the following was generated:

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 6:28:57 PM, on 11/2/2008
Platform: Windows XP SP3, v.3264 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.5730.0013)
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\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\system32\spoolsv.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\Google\Google Desktop Search\GoogleDesktop.exe
C:\Program Files\McAfee.com\Agent\mcagent.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\mdm.exe
C:\Program Files\McAfee\MPF\MPFSrv.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Common Files\Nero\Nero BackItUp 4\NBService.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\Program Files\Spyware Doctor\pctsAuxs.exe
C:\WINDOWS\system32\svchost.exe
C:\PROGRA~1\McAfee\VIRUSS~1\mcsysmon.exe
C:\Program Files\VideoLAN\VLC\vlc.exe
C:\WINDOWS\system32\rundll32.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\Program Files\Internet Explorer\IEXPLORE.EXE
C:\Program Files\Malwarebytes' Anti-Malware\mbam.exe
C:\WINDOWS\system32\NOTEPAD.EXE
C:\Documents and Settings\rajath\Desktop\HijackThis.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = about:blank
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 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 =
R3 - URLSearchHook: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: Yahoo! Toolbar Helper - {02478D38-C3F9-4EFB-9B51-7695ECA05670} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelper.dll
O2 - BHO: BitComet ClickCapture - {39F7E362-828A-4B5A-BCAF-5B79BFDFEA60} - G:\Torrent\BitComet\tools\BitCometBHO_1.2.6.26.dll
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll (file missing)
O2 - BHO: Groove GFS Browser Helper - {72853161-30C5-4D22-B7F9-0BBC1D38A37E} - C:\PROGRA~1\MICROS~2\Office12\GRA8E1~1.DLL
O2 - BHO: scriptproxy - {7DB2D5A0-7241-4E79-B68D-6309F01C5231} - C:\Program Files\McAfee\VirusScan\scriptsn.dll
O2 - BHO: McAfee SiteAdvisor BHO - {B164E929-A1B6-4A06-B104-2CD0E90A88FF} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O3 - Toolbar: (no name) - {BA52B914-B692-46c4-B683-905236F6F655} - (no file)
O3 - Toolbar: McAfee SiteAdvisor Toolbar - {0EBBBE48-BAD4-4B4C-8E5A-516ABECAE064} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [Google Desktop Search] "C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe" /startup
O4 - HKLM\..\Run: [mcagent_exe] "C:\Program Files\McAfee.com\Agent\mcagent.exe" /runkey
O4 - HKLM\..\Run: [WScheduler] C:\PROGRA~1\SYSTEM~1\WScheduler.exe /LOGON
O4 - HKLM\..\Run: [QuickTime Task] "C:\WINDOWS\system32\qttask.exe" -atboottime
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKUS\S-1-5-19\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-19\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-20\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'NETWORK SERVICE')
O4 - HKUS\S-1-5-18\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'Default user')
O8 - Extra context menu item: &D&ownload &with BitComet - res://G:\Torrent\BitComet\BitComet.exe/AddLink.htm
O8 - Extra context menu item: &D&ownload all video with BitComet - res://G:\Torrent\BitComet\BitComet.exe/AddVideo.htm
O8 - Extra context menu item: &D&ownload all with BitComet - res://G:\Torrent\BitComet\BitComet.exe/AddAllLink.htm
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\Office12\EXCEL.EXE/3000
O9 - Extra button: Send to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~2\Office12\ONBttnIE.dll
O9 - Extra 'Tools' menuitem: S&end to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~2\Office12\ONBttnIE.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\Office12\REFIEBAR.DLL
O9 - Extra button: BitComet - {D18A0B52-D63C-4ed0-AFC6-C1E3DC1AF43A} - res://G:\Torrent\BitComet\tools\BitCometBHO_1.2.6.26.dll/206 (file missing)
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: {30528230-99f7-4bb4-88d8-fa1d4f56a2ab} (YInstStarter Class) - C:\Program Files\Yahoo!\Common\yinsthelper.dll
O16 - DPF: {56762DEC-6B0D-4AB4-A8AD-989993B5D08B} (OnlineScanner Control) - http://www.eset.eu/buxus/docs/OnlineScanner.cab
O17 - HKLM\System\CCS\Services\Tcpip\..\{B65A8B41-AB2B-46D9-A7C0-FF4A24F50907}: NameServer = 218.248.240.208,218.248.240.135
O18 - Protocol: grooveLocalGWS - {88FED34C-F0CA-4636-A375-3CB6248B04CD} - C:\PROGRA~1\MICROS~2\Office12\GR99D3~1.DLL
O18 - Protocol: sacore - {5513F07E-936B-4E52-9B00-067394E91CC5} - c:\PROGRA~1\mcafee\SITEAD~1\mcieplg.dll
O20 - AppInit_DLLs: AVGRSSTX.DLL C:\PROGRA~1\GOOGLE\GOOGLE~1\GOEC62~1.DLL
O23 - Service: Google Desktop Manager 5.8.809.23506 (GoogleDesktopManager-092308-165331) - Google - C:\Program Files\Google\Google Desktop Search\GoogleDesktop.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: Nero BackItUp Scheduler 4.0 - Nero AG - C:\Program Files\Common Files\Nero\Nero BackItUp 4\NBService.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: PC Tools Auxiliary Service (sdAuxService) - PC Tools - C:\Program Files\Spyware Doctor\pctsAuxs.exe
O23 - Service: PC Tools Security Service (sdCoreService) - PC Tools - C:\Program Files\Spyware Doctor\pctsSvc.exe

--
End of file - 8250 bytes

Looks like everything is back to normal now.
Thanks sincerely for all your help.
If there is any more cause for concern from the logs please do let me know.
Thanks again.

PS: Is this a new virus? Because only a mcafee update could fix this. Before mcafee i was using avg and even an update couldnt fix the problem.

Sorry I have taken so long to respond. I have been out of town. No, this is not a new virus, in fact it has been around for several years, since 2005.
It is actually a Polymorphic Win32 virus which hides its presence from antivirus software.
It is known by different names really, depending on the anti-virus program used, one of which is W32.Virut.A
The W32.Virut.A Opens a back door on TCP port 65520 by connecting to the Proxima.ircgalaxy.pl IRC server on channel &virtu.
The back door allows an attacker to download files onto the compromised computer.
You also obviously had a Trojan on the computer since one was discovered and removed by MBA-M in your System Restore.
I would recommend that you run HJT again and place a check mark next to the following entry;This entry refers to AVG 8. Did you Uninstall it? If so then place that check mark.
O20 - AppInit_DLLs: AVGRSSTX.DLL C:\PROGRA~1\GOOGLE\GOOGLE~1\GOEC62~1.DLL
Once you have placed the check mark then click the Fix Checked button.
Exit HJT

Thank you so much :)

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