What did you do? It's got trash in there already!

Launch Notepad, and copy/paste the bold below into a new text file. Save it as URLRepair.reg (Change the 'Save As Type' to 'All Files'). Save it in C:\

REGEDIT4
[-HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\URLSearchHooks]
[HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\URLSearchHooks]
"{CFBFAE00-17A6-11D0-99CB-00C04FD64497}"=""

Locate it (in C:\) and double-click on it (launch it). You'll recieve a prompt similar to: "Do you wish to merge the information into the registry?". Answer yes and wait for a message to appear similar to "Merged Successfully".

Close all (browser) windows & rescan with hijackthis. When the scan is finished place a check in the box to the left of the following entries & click 'fix checked' :

O2 - BHO: (no name) - {9C691A33-7DDA-4C2F-BE4C-C176083F35CF} - C:\WINDOWS\Downloaded Program Files\CONFLICT.3\bridge.dll
O2 - BHO: (no name) - {F7F808F0-6F7D-442C-93E3-4A4827C2E4C8} - C:\WINDOWS\nem216.dll

O4 - HKLM\..\Run: [RunDLL] rundll32.exe "C:\WINDOWS\Downloaded Program Files\CONFLICT.3\bridge.dll",Load
O4 - HKLM\..\Run: [Internet Optimizer] "C:\Program Files\Internet Optimizer\optimize.exe"
O4 - HKLM\..\Run: [WebRebates] javaw -cp "C:\Program Files\WebRebates\System\Code" Main lp: "C:\Program Files\WebRebates"

O16 - DPF: {9C691A33-7DDA-4C2F-BE4C-C176083F35CF} (brdg Class) - http://www2.flingstone.com/cab/2000XP/CDTInc/bridge.cab

Reboot into safe mode following the instructions here & navigate to & delete

C:\WINDOWS\Downloaded Program Files\CONFLICT.3< folder
C:\Program Files\Internet Optimizer< folder
C:\Program Files\WebRebates< folder

Reboot normally after doing the above then post a fresh log plz.

Download & install spywareblaster to prevent the installation of bad activeX controls.