Please do an online scan with Kaspersky WebScanner

Click Scan Now and Accept the agreement. You will be promted to install an ActiveX component from Kaspersky, click Yes

The program will launch and then begin downloading the latest definition files:

• Once the files have been downloaded click on NEXT
• Now click on Scan Settings
• In the scan settings make that the following are selected:
  • Scan using the following Anti-Virus database:
  • Extended (if available otherwise Standard)
  • Scan Options:
  • Scan Archives
  • Scan Mail Bases
• Click OK
• Now under select a target to scan:
  • Select My Computer
• This will program will start and scan your system.
• The scan will take a while so be patient and let it run.
• Once the scan is complete it will display if your system has been infected.
  • Now click on the Save as Text button:
• Save the file to your desktop.

Please post the contents of the log here.

I didn't get a chance to do the aforementioned actions before the infection got worse.
My desktop has been changed "Anti-spyware bullcrap" - and I was prompted with a fake XP Antivirus installation wizard.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 4:59:54 AM, on 8/21/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)
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\system32\spoolsv.exe
C:\WINDOWS\system32\devldr32.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Logitech\Video\LogiTray.exe
C:\Program Files\Java\jre1.6.0_02\bin\jusched.exe
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\Nikon\NkView6\NkvMon.exe
C:\WINDOWS\system32\LVComsX.exe
C:\Program Files\Logitech\Video\FxSvr2.exe
C:\Program Files\ewido anti-malware\ewidoctrl.exe
C:\WINDOWS\runservice.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\wscntfy.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\WgaTray.exe
C:\Program Files\Windows Live\Messenger\usnsvc.exe
C:\WINDOWS\system32\wisptis.exe
C:\WINDOWS\system32\a.exe
C:\WINDOWS\system32\msiexec.exe
C:\DOCUME~1\anyuser\LOCALS~1\Temp\ehhomofe.exe
C:\Program Files\Internet Explorer\Iexplore.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.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
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = 195.248.254.11:8080
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 6.0\Reader\ActiveX\AcroIEHelper.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O2 - BHO: Windows Live Sign-in Helper - {9030D464-4C02-4ABF-8ECC-5164760863C6} - C:\Program Files\Common Files\Microsoft Shared\Windows Live\WindowsLiveLogin.dll
O4 - HKLM\..\Run: [AHQInit] C:\Program Files\Creative\SBLive\Program\AHQInit.exe
O4 - HKLM\..\Run: [LogitechVideoRepair] C:\Program Files\Logitech\Video\ISStart.exe
O4 - HKLM\..\Run: [LogitechVideoTray] C:\Program Files\Logitech\Video\LogiTray.exe
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre1.6.0_02\bin\jusched.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [lphclnbj0e57j] C:\WINDOWS\system32\lphclnbj0e57j.exe
O4 - HKCU\..\Run: [LogitechSoftwareUpdate] "C:\Program Files\Logitech\Video\ManifestEngine.exe" boot
O4 - Global Startup: Adobe Gamma Loader.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Global Startup: NkvMon.exe.lnk = C:\Program Files\Nikon\NkView6\NkvMon.exe
O8 - Extra context menu item: Copy to Semagic - C:\Program Files\Semagic\copy.htm
O8 - Extra context menu item: Druid: Download All Files - C:\Program Files\XemiComputers\Download Druid\Druid.html
O8 - Extra context menu item: Druid: Download Highlighted Files - C:\Program Files\XemiComputers\Download Druid\DruidHighLighted.html
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O8 - Extra context menu item: Semagic - C:\Program Files\Semagic\link.htm
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.DLL
O9 - Extra button: Druid Bar - {A6B25D86-CB76-44C1-8E35-328EE8F4BEF0} - C:\Program Files\XemiComputers\Download Druid\DruidBar.dll
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: {4F1E5B1A-2A80-42CA-8532-2D05CB959537} (MSN Photo Upload Tool) - http://gfx2.hotmail.com/mail/w2/resources/MSNPUpld.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://v5.windowsupdate.microsoft.co...?1100805643683
O16 - DPF: {C3F79A2B-B9B4-4A66-B012-3EE46475B072} (MessengerStatsClient Class) - http://messenger.zone.msn.com/binary...t.cab56907.cab
O23 - Service: ewido security suite control - ewido networks - C:\Program Files\ewido anti-malware\ewidoctrl.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\1050\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: LicCtrl Service (LicCtrlService) - Unknown owner - C:\WINDOWS\runservice.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: Remote Packet Capture Protocol v.0 (experimental) (rpcapd) - CACE Technologies - C:\Program Files\WinPcap\rpcapd.exe
O23 - Service: System Startup Service (SvcProc) - Unknown owner - C:\WINDOWS\svcproc.exe (file missing)

--
End of file - 5684 bytes

Should I continue with the above actions?

Yes, you have Antivirus XP in your computer.

Please do this first :
Please download ATF Cleaner by Atribune to your desktop.

• Double-click ATF-Cleaner.exe to run the program.
• Under Main choose: Select All
• Click the Empty Selected button.

Now, please follow the fixes in my first post and post back the requested logs.

Ran ATF Cleaner

Unable to connect to kaspersky.com. Is the site down or is this the work of the infection?

It's up and running. No problem with the site. You seem to be accessing websites through a proxy.
I think you may have to do the following.

Please re-open HijackThis and place a check on :


R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = 195.248.254.11:8080


Close all windows and click Fix Checked.

Now try accessing Kaspersky.

Still can't access the site.

Checked HiJack again, the selected object has been deleted.

Alright, I think MBAM has to be run first.
I think the offending file is affecting your internet access.

The scan and fix will take a long time.
Sit back and *relax*

Scan's been run.
Kaspersky is still unaccessable.

It's worth noting that when MBAM rebooted at the end of its run, Windows started up to a Blue Screen that said there was something wrong with it.
PANICK_SWITCH_STACK
Something along those lines; it suggested that if it was the first time the message showed, I should reboot. I did and Windows started up normally.

Hijack Log after MBAM

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 6:32:22 AM, on 8/21/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)
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\system32\spoolsv.exe
C:\WINDOWS\system32\devldr32.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\ewido anti-malware\ewidoctrl.exe
C:\WINDOWS\runservice.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\Program Files\Logitech\Video\LogiTray.exe
C:\Program Files\Java\jre1.6.0_02\bin\jusched.exe
C:\Program Files\QuickTime\qttask.exe
C:\WINDOWS\system32\lphclnbj0e57j.exe
C:\Program Files\Nikon\NkView6\NkvMon.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\LVComsX.exe
C:\Program Files\Logitech\Video\FxSvr2.exe
C:\WINDOWS\system32\wscntfy.exe
C:\WINDOWS\system32\WgaTray.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\wuauclt.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.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
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 6.0\Reader\ActiveX\AcroIEHelper.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O2 - BHO: Windows Live Sign-in Helper - {9030D464-4C02-4ABF-8ECC-5164760863C6} - C:\Program Files\Common Files\Microsoft Shared\Windows Live\WindowsLiveLogin.dll
O4 - HKLM\..\Run: [AHQInit] C:\Program Files\Creative\SBLive\Program\AHQInit.exe
O4 - HKLM\..\Run: [LogitechVideoRepair] C:\Program Files\Logitech\Video\ISStart.exe
O4 - HKLM\..\Run: [LogitechVideoTray] C:\Program Files\Logitech\Video\LogiTray.exe
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre1.6.0_02\bin\jusched.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [lphclnbj0e57j] C:\WINDOWS\system32\lphclnbj0e57j.exe
O4 - HKCU\..\Run: [LogitechSoftwareUpdate] "C:\Program Files\Logitech\Video\ManifestEngine.exe" boot
O4 - Global Startup: Adobe Gamma Loader.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Global Startup: NkvMon.exe.lnk = C:\Program Files\Nikon\NkView6\NkvMon.exe
O8 - Extra context menu item: Copy to Semagic - C:\Program Files\Semagic\copy.htm
O8 - Extra context menu item: Druid: Download All Files - C:\Program Files\XemiComputers\Download Druid\Druid.html
O8 - Extra context menu item: Druid: Download Highlighted Files - C:\Program Files\XemiComputers\Download Druid\DruidHighLighted.html
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O8 - Extra context menu item: Semagic - C:\Program Files\Semagic\link.htm
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.DLL
O9 - Extra button: Druid Bar - {A6B25D86-CB76-44C1-8E35-328EE8F4BEF0} - C:\Program Files\XemiComputers\Download Druid\DruidBar.dll
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: {4F1E5B1A-2A80-42CA-8532-2D05CB959537} (MSN Photo Upload Tool) - http://gfx2.hotmail.com/mail/w2/resources/MSNPUpld.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://v5.windowsupdate.microsoft.co...?1100805643683
O16 - DPF: {C3F79A2B-B9B4-4A66-B012-3EE46475B072} (MessengerStatsClient Class) - http://messenger.zone.msn.com/binary...t.cab56907.cab
O23 - Service: ewido security suite control - ewido networks - C:\Program Files\ewido anti-malware\ewidoctrl.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\1050\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: LicCtrl Service (LicCtrlService) - Unknown owner - C:\WINDOWS\runservice.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: Remote Packet Capture Protocol v.0 (experimental) (rpcapd) - CACE Technologies - C:\Program Files\WinPcap\rpcapd.exe
O23 - Service: System Startup Service (SvcProc) - Unknown owner - C:\WINDOWS\svcproc.exe (file missing)

--
End of file - 5363 bytes

Alright, skip that for now.
Please download the Nailfix utility.
DO NOT run it yet.

Reboot into Safe Mode. To do this with Windows XP, you can follow these steps from Microsoft:

1. Restart your computer and start pressing the F8 key on your keyboard. On a computer that is configured for booting to multiple operating systems, you can press the F8 key when you the Boot Menu appears.
2. Select an option when the Windows Advanced Options menu appears, and then press ENTER.
3. When the Boot menu appears again, and the words "Safe Mode" appear in blue at the bottom, select the installation that you want to start, and then press ENTER.

Once in Safe Mode, please double-click on nailfix.exe. Click "Next" in the setup, then make sure "Run Nailfix" is checked and click "Finish". Your desktop and icons will disappear and reappear, and a window should open and close very quickly --- this is normal.


Please press Ctrl+Shift+Esc to open the taskmanager and click on Processes.
Now look for this process and end it :

lphclnbj0e57j.exe


Now, run MBAM again and post back with the results and a new HijackThis log.

Please create a restore point before you do the above