Alright, lets get you cleaned up :). Lets first download and run some tools before we get deeper into the HJT logs.
Please download ewido - www.ewido.net - Install. Update. Scan. Remove anything it finds.
Download smitRem.exe ( http://www.bleepingcomputer.com/resources/link240.html) , saving the file to your desktop. Double click it to extract the contents to a folder of it's own. Restart your computer in safe mode, logon to the user account that is infected, open the smitRem folder and double click the RunThis.bat file to start the tool. Follow the prompts on screen and allow disk cleanup to complete. Upon reboot, you can reset your desktop background. Note: XP users using the XP theme may ex-perience a change to the Classic Windows theme. This can be changed on the themes tab of desktop properties.
Then please post a new HJT log, and the ewido log, and the contents of C:\Smitfiles.txt.