Run HJT again and put check marks next to these two entries:
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = 207.248.228.166:80
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = ;;;*.local;;;;;;;;;;;;;;;;;;;;<local>
Click the Fix Checked button.
Exit HJT.
Reboot the computer.
Check to see if you are still being re-directed.
Run an new HJT log and post it here.

Ok deleted both entries, rebooted and tested - same problem, still getting re-directed. Remembered that at the beginning I could not get Microsoft Malicious removal tool to run, I tried again and it still refuses to do anything (works fine on laptop). I downloaded Trend Micro Rootbuster kit, although it ran the PC Blue Screened before completion.
I've run a new HJT log and pasted it below.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 20:10:58, on 29/06/2009
Platform: Windows Vista SP2 (WinNT 6.00.1906)
MSIE: Internet Explorer v8.00 (8.00.6001.18702)
Boot mode: Normal

Running processes:
C:\Windows\system32\Dwm.exe
C:\Windows\Explorer.EXE
C:\Windows\system32\taskeng.exe
C:\Program Files\Windows Defender\MSASCui.exe
C:\Windows\Samsung\PanelMgr\SSMMgr.exe
C:\Program Files\Trust\WB-3500T USB2 Webcam\SnapTrap.exe
C:\Windows\System32\wpcumi.exe
C:\Windows\System32\rundll32.exe
C:\Program Files\Unlocker\UnlockerAssistant.exe
C:\Program Files\Google\Google Pinyin\GooglePinyinDaemon.exe
C:\Program Files\Adobe\Reader 9.0\Reader\reader_sl.exe
C:\Program Files\O2\bin\sprtcmd.exe
C:\Program Files\CA\eTrustITM\Realmon.exe
C:\Windows\System32\rundll32.exe
C:\Windows\emMON.exe
C:\Program Files\QuickTime\QTTask.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\Java\jre6\bin\jusched.exe
C:\Program Files\Windows Sidebar\sidebar.exe
C:\Windows\ehome\ehtray.exe
C:\Program Files\Windows Live\Messenger\msnmsgr.exe
C:\Program Files\Common Files\InstallShield\UpdateService\ISUSPM.exe
C:\Program Files\Windows Media Player\wmpnscfg.exe
C:\Program Files\Kontiki\KHost.exe
C:\Program Files\Sony Ericsson\Sony Ericsson PC Suite\SEPCSuite.exe
C:\Program Files\MozyHome\mozystat.exe
C:\Program Files\MagicDisc\MagicDisc.exe
C:\Program Files\SpywareGuard\sgmain.exe
C:\Windows\ehome\ehmsas.exe
C:\Program Files\SpywareGuard\sgbhp.exe
C:\Program Files\Windows Live\Contacts\wlcomm.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Windows Live\Toolbar\wltuser.exe
C:\Program Files\Trend Micro\HijackThis\1HijackThis.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Bar = Preserve
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.google.co.uk/
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 =
R0 - HKCU\Software\Microsoft\Internet Explorer\Toolbar,LinksFolderName =
O2 - BHO: AcroIEHelperStub - {18DF081C-E8AD-4283-A596-FA578C2EBDC3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelperShim.dll
O2 - BHO: RealPlayer Download and Record Plugin for Internet Explorer - {3049C3E9-B461-4BC5-8870-4C09146192CA} - C:\Program Files\Real\RealPlayer\rpbrowserrecordplugin.dll
O2 - BHO: SpywareGuard Download Protection - {4A368E80-174F-4872-96B5-0B27DDD11DB2} - C:\Program Files\SpywareGuard\dlprotect.dll
O2 - BHO: Spybot-S&D IE Protection - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: (no name) - {5C255C8A-E604-49b4-9D64-90988571CECB} - (no file)
O2 - BHO: Search Helper - {6EBF7485-159F-4bff-A14F-B9E3AAC4465B} - C:\Program Files\Microsoft\Search Enhancement Pack\Search Helper\SEPsearchhelperie.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\googletoolbar1.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: Java(tm) Plug-In 2 SSV Helper - {DBC80044-A445-435b-BC74-9C25C1C588A9} - C:\Program Files\Java\jre6\bin\jp2ssv.dll
O2 - BHO: Windows Live Toolbar Helper - {E15A8DC0-8516-42A1-81EA-DC94EC1ACF10} - C:\Program Files\Windows Live\Toolbar\wltcore.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar1.dll
O3 - Toolbar: &Windows Live Toolbar - {21FA44EF-376D-4D53-9B0F-8A89D3229068} - C:\Program Files\Windows Live\Toolbar\wltcore.dll
O4 - HKLM\..\Run: [Windows Defender] %ProgramFiles%\Windows Defender\MSASCui.exe -hide
O4 - HKLM\..\Run: [Samsung PanelMgr] C:\Windows\Samsung\PanelMgr\SSMMgr.exe /autorun
O4 - HKLM\..\Run: [STICAP] C:\Program Files\Trust\WB-3500T USB2 Webcam\SnapTrap.exe
O4 - HKLM\..\Run: [Windows Mobile Device Center] %windir%\WindowsMobile\wmdc.exe
O4 - HKLM\..\Run: [WPCUMI] C:\Windows\system32\WpcUmi.exe
O4 - HKLM\..\Run: [C6501Sound] RunDll32 c6501.cpl,CMICtrlWnd
O4 - HKLM\..\Run: [Realtime Monitor] "C:\Program Files\CA\eTrustITM\realmon.exe" -s
O4 - HKLM\..\Run: [UnlockerAssistant] "C:\Program Files\Unlocker\UnlockerAssistant.exe"
O4 - HKLM\..\Run: [Google IME Autoupdater] "C:\Program Files\Google\Google Pinyin\GooglePinyinDaemon.exe"
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files\Adobe\Reader 9.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [O2] "C:\Program Files\O2\bin\sprtcmd.exe" /P O2
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: [amd_dc_opt] C:\Program Files\AMD\Dual-Core Optimizer\amd_dc_opt.exe
O4 - HKLM\..\Run: [emMON] C:\WINDOWS\emmon.exe
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\QTTask.exe" -atboottime
O4 - HKLM\..\Run: [AppleSyncNotifier] C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleSyncNotifier.exe
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre6\bin\jusched.exe"
O4 - HKCU\..\Run: [Sidebar] C:\Program Files\Windows Sidebar\sidebar.exe /autoRun
O4 - HKCU\..\Run: [ehTray.exe] C:\Windows\ehome\ehTray.exe
O4 - HKCU\..\Run: [MsnMsgr] "C:\Program Files\Windows Live\Messenger\MsnMsgr.Exe" /background
O4 - HKCU\..\Run: [ISUSPM] "C:\Program Files\Common Files\InstallShield\UpdateService\ISUSPM.exe" -scheduler
O4 - HKCU\..\Run: [WMPNSCFG] C:\Program Files\Windows Media Player\WMPNSCFG.exe
O4 - HKCU\..\Run: [kdx] C:\Program Files\Kontiki\KHost.exe -all
O4 - HKCU\..\Run: [Sony Ericsson PC Suite] "C:\Program Files\Sony Ericsson\Sony Ericsson PC Suite\SEPCSuite.exe" /systray /nologon
O4 - HKUS\S-1-5-19\..\Run: [Sidebar] %ProgramFiles%\Windows Sidebar\Sidebar.exe /detectMem (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-19\..\Run: [WindowsWelcomeCenter] rundll32.exe oobefldr.dll,ShowWelcomeCenter (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-20\..\Run: [Sidebar] %ProgramFiles%\Windows Sidebar\Sidebar.exe /detectMem (User 'NETWORK SERVICE')
O4 - Startup: Adobe Gamma.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Startup: MagicDisc.lnk = C:\Program Files\MagicDisc\MagicDisc.exe
O4 - Startup: SpywareGuard.lnk = C:\Program Files\SpywareGuard\sgmain.exe
O4 - Global Startup: Adobe Gamma Loader.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Global Startup: MozyHome Status.lnk = C:\Program Files\MozyHome\mozystat.exe
O4 - Global Startup: VPN Client.lnk = ?
O9 - Extra button: ieSpell - {0E17D5B7-9F5D-4fee-9DF6-CA6EE38B68A8} - C:\Program Files\ieSpell\iespell.dll
O9 - Extra 'Tools' menuitem: ieSpell - {0E17D5B7-9F5D-4fee-9DF6-CA6EE38B68A8} - C:\Program Files\ieSpell\iespell.dll
O9 - Extra button: (no name) - {1606D6F9-9D3B-4aea-A025-ED5B2FD488E7} - C:\Program Files\ieSpell\iespell.dll
O9 - Extra 'Tools' menuitem: ieSpell Options - {1606D6F9-9D3B-4aea-A025-ED5B2FD488E7} - C:\Program Files\ieSpell\iespell.dll
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: @C:\Windows\WindowsMobile\INetRepl.dll,-222 - {2EAF5BB1-070F-11D3-9307-00C04FAE2D4F} - C:\Windows\WindowsMobile\INetRepl.dll
O9 - Extra button: (no name) - {2EAF5BB2-070F-11D3-9307-00C04FAE2D4F} - C:\Windows\WindowsMobile\INetRepl.dll
O9 - Extra 'Tools' menuitem: @C:\Windows\WindowsMobile\INetRepl.dll,-223 - {2EAF5BB2-070F-11D3-9307-00C04FAE2D4F} - C:\Windows\WindowsMobile\INetRepl.dll
O9 - Extra button: (no name) - {85d1f590-48f4-11d9-9669-0800200c9a66} - C:\Windows\bdoscandel.exe (file missing)
O9 - Extra 'Tools' menuitem: Uninstall BitDefender Online Scanner v8 - {85d1f590-48f4-11d9-9669-0800200c9a66} - C:\Windows\bdoscandel.exe (file missing)
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\Office12\REFIEBAR.DLL
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
O13 - Gopher Prefix:
O16 - DPF: CabBuilder - http://kiw.imgag.com/imgag/kiw/toolb...lerControl.cab
O16 - DPF: {01232355-5C70-455B-B33E-A62433F3B77F} (WebCamX Control) - http://cctv.nolanseafoods.co.uk/WebCamX.cab
O16 - DPF: {0CCA191D-13A6-4E29-B746-314DEE697D83} (Facebook Photo Uploader 5 Control) - http://upload.facebook.com/controls/...oUploader5.cab
O16 - DPF: {3EA4FA88-E0BE-419A-A732-9B79B87A6ED0} (CTVUAxCtrl Object) - http://dl.tvunetworks.com/TVUAx.cab
O16 - DPF: {7530BFB8-7293-4D34-9923-61A11451AFC5} (OnlineScanner Control) - http://download.eset.com/special/eos/OnlineScanner.cab
O16 - DPF: {CF40ACC5-E1BB-4AFF-AC72-04C2F616BCA7} -
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - http://fpdownload2.macromedia.com/ge...sh/swflash.cab
O22 - SharedTaskScheduler: Windows DreamScene - {E31004D1-A431-41B8-826F-E902F9D95C81} - C:\Windows\System32\DreamScene.dll
O23 - Service: Adobe LM Service - Adobe Systems - C:\Program Files\Common Files\Adobe Systems Shared\Service\Adobelmsvc.exe
O23 - Service: Apple Mobile Device - Apple Inc. - C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
O23 - Service: Bonjour Service - Apple Inc. - C:\Program Files\Bonjour\mDNSResponder.exe
O23 - Service: Cisco Systems, Inc. VPN Service (CVPND) - Cisco Systems, Inc. - C:\Program Files\Cisco Systems\VPN Client\cvpnd.exe
O23 - Service: FLEXnet Licensing Service - Acresso Software Inc. - C:\Program Files\Common Files\Macrovision Shared\FLEXnet Publisher\FNPLicensingService.exe
O23 - Service: Google Update Service (gupdate1c99066d7f1b4b5) (gupdate1c99066d7f1b4b5) - Google Inc. - C:\Program Files\Google\Update\GoogleUpdate.exe
O23 - Service: Google Software Updater (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\1050\Intel 32\IDriverT.exe
O23 - Service: iTechnology iGateway 4.2 (iGateway) - CA, Inc. - C:\Program Files\CA\SharedComponents\iTechnology\igateway.exe
O23 - Service: eTrust ITM RPC Service (InoRPC) - CA - C:\Program Files\CA\eTrustITM\InoRpc.exe
O23 - Service: eTrust Antivirus Realtime Service (InoRT) - CA - C:\Program Files\CA\eTrustITM\InoRT.exe
O23 - Service: eTrust ITM Job Service (InoTask) - CA - C:\Program Files\CA\eTrustITM\InoTask.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: CA Pest Patrol Realtime Protection Service (ITMRTSVC) - CA, Inc. - C:\Program Files\CA\SharedComponents\PPRealtime\bin\ITMRTSVC.exe
O23 - Service: KService - Kontiki Inc. - C:\Program Files\Kontiki\KService.exe
O23 - Service: MozyHome Backup Service (mozybackup) - Unknown owner - C:\Program Files\MozyHome\mozybackup.exe
O23 - Service: NBService - Nero AG - C:\Program Files\Nero\Nero 7\Nero BackItUp\NBService.exe
O23 - Service: NMIndexingService - Nero AG - C:\Program Files\Common Files\Ahead\Lib\NMIndexingService.exe
O23 - Service: NVIDIA Display Driver Service (nvsvc) - NVIDIA Corporation - C:\Windows\system32\nvvsvc.exe
O23 - Service: LiveShare P2P Server 9 (RoxLiveShare9) - Unknown owner - C:\Program Files\Common Files\Roxio Shared\9.0\SharedCOM\RoxLiveShare9.exe (file missing)
O23 - Service: SBSD Security Center Service (SBSDWSCService) - Safer Networking Ltd. - C:\Program Files\Spybot - Search & Destroy\SDWinSec.exe
O23 - Service: SupportSoft Sprocket Service (O2) (sprtsvc_O2) - SupportSoft, Inc. - C:\Program Files\O2\bin\sprtsvc.exe
O23 - Service: SupportSoft RemoteAssist - SupportSoft, Inc. - C:\Program Files\Common Files\Supportsoft\bin\ssrc.exe
O23 - Service: TunerFreeMCEService - Unknown owner - C:\Program Files\MillieSoft\TunerFreeMCE\TunerFreeMCEService.exe

--
End of file - 13134 bytes

Think I might have found part of the problem. Went and checked Trend RootkitBuster logs and it had entries even though it Blue Screened while running -
C:\Avenger\MSIVXcount
Remember seeing this in the MalwareByte's log and it had apparently quarantined and deleted the file. Folder is there and appears empty though it wont allow you to delete it advising 'Error 0x80070091: The Directory is not Empty'. I have show hidden files and folders ticked and the hide protected operating system files removed.

I am going to advise that you hold off running any more removal tools, until crunchie can take a look at this. Vista can be very "squirly" with some removals, you don't want to mess anything up, ok?
There obviously is "something" there and I have an idea of what crunchie may recommend but since I am hesitant with the Vista OS I want to wait. He will check this out I assure you.
Judy

Cheers -On hold awaiting crunchie's instructions

I have no idea of your location, I believe crunchie's is Australia, I am in the US so take into consideration possible time differences.

Ok, here's crunchie's recommendation:

Please download GooredFix from one of the locations below and save it to your Desktop
Download Mirror #1
Download Mirror #2

* Double-click GooredFix.exe to run it.
* Select 1. Find Goored (no fix) by typing 1 and pressing Enter.
* A log will open, please post the contents of that log in your next reply (it can also be found on your desktop, called GooredLog.txt).

Note: Do not run Option #2 yet.
Judy

Thanks for the quick help - I'm in UK...so truly global effort here
Here's log requested....

GooredFix v1.92 by jpshortstuff
Log created at 22:58 on 29/06/2009 running Option #1
Firefox version [Unable to determine]

=====Suspect Goored Entries=====

=====Dumping Registry Values=====

[HKEY_LOCAL_MACHINE\SOFTWARE\Mozilla\Firefox\extensions]
"{ABDE892B-13A8-4d1b-88E6-365A6E755758}"="C:\Program Files\Real\RealPlayer\browserrecord"

You should print these instructions because all FireFox browsers MUST be closed before running the fix.

* Please double-click Goored.exe on your Desktop to run it.
o Select 2. Fix Goored by typing 2 and pressing Enter.
o Make sure all instances of Firefox are closed at this point.
o Type y at the prompt and press Enter again.
o A log will open which you can just close. The log file is named Goored.txt and is on your Desktop.
Note: If you receive a message saying that GooredFix needs your system to be restarted, please close all applications and reboot your system. Please also allow any registry changes that may be prompted by any of your security programs.

* Now rerun FireFox and please attach the new Goored.txt log to your next reply

Hi, Dont have Firefox installed, using IE8 ?? Re run Goored and selected option 2 anyways, here's the log file.

GooredFix v1.92 by jpshortstuff
Log created at 06:37 on 30/06/2009 running Option #2
Firefox version [Unable to determine]

=====Goored Deletions=====

=====Dumping Registry Values=====

[HKEY_LOCAL_MACHINE\SOFTWARE\Mozilla\Firefox\extensions]
"{ABDE892B-13A8-4d1b-88E6-365A6E755758}"="C:\Program Files\Real\RealPlayer\browserrecord"