Go here, get hijackthis....
http://216.180.233.162/~merijn/files/HijackThis.exe
Save it into its own, new folder [beside program files is good, NOT in a temp folder or on the desktop]. Start it by dclicking the .exe file, and then CLOSE ALL OTHER APPLICATIONS AND WINDOWS. Press Scan and save a logfile. A notepad with the file will open. Post it here.

Thanks Gerbil, Here is a cut and paste of the logfile:

Logfile of HijackThis v1.99.1
Scan saved at 8:59:54 AM, on 12/27/2006
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.5730.0011)
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:\Program Files\Microsoft Windows OneCare Live\Antivirus\MSMPSVC.exe
C:\Program Files\Windows Defender\MsMpEng.exe
C:\Program Files\Microsoft Windows OneCare Live\Antivirus\MpEng.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Intel\Wireless\Bin\ZcfgSvc.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Apoint\Apoint.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe
C:\Program Files\Windows Defender\MSASCui.exe
C:\Program Files\Microsoft Windows OneCare Live\winssnotify.exe
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktopIndex.exe
C:\Program Files\Palm\Hotsync.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktopDisplay.exe
C:\Program Files\Apoint\Apntex.exe
C:\Program Files\Apoint\HidFind.exe
C:\WINDOWS\system32\bmwebcfg.exe
C:\Program Files\Canon\DIAS\CnxDIAS.exe
C:\WINDOWS\eHome\ehRecvr.exe
C:\WINDOWS\eHome\ehSched.exe
C:\Program Files\Intel\Wireless\Bin\EvtEng.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\MDM.EXE
C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Microsoft Windows OneCare Live\Firewall\msfwsvc.exe
C:\Program Files\Microsoft Windows OneCare Live\winss.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\system32\dllhost.exe
C:\Program Files\Google\GoogleToolbarNotifier\1.2.908.5008\GoogleToolbarNotifier.exe
C:\Documents and Settings\John Eichler\My Documents\Hijack Folder\HijackThis.exe
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.nwmls.com/
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
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 6.0\Reader\ActiveX\AcroIEHelper.dll
O2 - BHO: DriveLetterAccess - {5CA3D70E-1895-11CF-8E15-001234567890} - C:\WINDOWS\System32\DLA\DLASHX_W.DLL
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar3.dll
O2 - BHO: Browser Address Error Redirector - {CA6319C0-31B7-401E-A518-A07C3DB8F777} - c:\Program Files\BAE\BAE.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar3.dll
O4 - HKLM\..\Run: [Apoint] C:\Program Files\Apoint\Apoint.exe
O4 - HKLM\..\Run: [Google Desktop Search] "C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe" /startup
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [Windows Defender] "C:\Program Files\Windows Defender\MSASCui.exe" -hide
O4 - HKLM\..\Run: [OneCareUI] "C:\Program Files\Microsoft Windows OneCare Live\winssnotify.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [mschkdsk.exe] C:\WINDOWS\system32\mschkdsk.exe
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\1.0.720.3640\GoogleToolbarNotifier.exe
O4 - Global Startup: HOTSYNCSHORTCUTNAME.lnk = C:\Program Files\Palm\Hotsync.exe
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~4\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\j2re1.4.2_03\bin\npjpi142_03.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\j2re1.4.2_03\bin\npjpi142_03.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~4\OFFICE11\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
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O10 - Broken Internet access because of LSP provider 'bmnet.dll' missing
O11 - Options group: [INTERNATIONAL] International*
O16 - DPF: {01A88BB1-1174-41EC-ACCB-963509EAE56B} (SysProWmi Class) - http://support.dell.com/systemprofiler/SysPro.CAB
O16 - DPF: {02BF25D5-8C17-4B23-BC80-D3488ABDDC6B} (QuickTime Object) - https://www.apple.com/qtactivex/qtplugin.cab
O16 - DPF: {13EC55CF-D993-475B-9ACA-F4A384957956} (Controller Class) - https://www.windowsonecare.com/insta...SSWebAgent.CAB
O16 - DPF: {406B5949-7190-4245-91A9-30A17DE16AD0} (Snapfish Activia) - http://www.costcophotocenter.com/CostcoActivia.cab
O20 - AppInit_DLLs: C:\PROGRA~1\Google\GOOGLE~1\GOEC62~1.DLL
O20 - Winlogon Notify: IntelWireless - C:\Program Files\Intel\Wireless\Bin\LgNotify.dll
O20 - Winlogon Notify: WgaLogon - C:\WINDOWS\SYSTEM32\WgaLogon.dll
O23 - Service: Bytemobile Web Configurator (bmwebcfg) - Bytemobile, Inc. - C:\WINDOWS\system32\bmwebcfg.exe
O23 - Service: Canon Driver Information Assist Service - CANON INC. - C:\Program Files\Canon\DIAS\CnxDIAS.exe
O23 - Service: EvtEng - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\EvtEng.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: MSMPSVC - Unknown owner - C:\Program Files\Microsoft Windows OneCare Live\Antivirus\MSMPSVC.exe" -n 4 (file missing)
O23 - Service: NICCONFIGSVC - Dell Inc. - C:\Program Files\Dell\NICCONFIGSVC\NICCONFIGSVC.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\system32\HPZipm12.exe
O23 - Service: RegSrvc - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
O23 - Service: Spectrum24 Event Monitor (S24EventMonitor) - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\S24EvMon.exe
O23 - Service: WLANKEEPER - Intel® Corporation - C:\Program Files\Intel\Wireless\Bin\WLKeeper.exe

i do not use OneCare, but surely it supercedes Defender? .. M$ say that defender is "integrated" with onecare - did they really mean its supplied with it and just its status ismonitored? If not then you do not need two realtime scanners for spyware - it just bogs down your system. i find it surreal tho that M$ can sell software to block holes in its other products. Sweet. On to your problem.
You appear to have some sort of issue with bytemobile configurator.... do you use bytemobile to speed up a mobile phone web connection? Have you udated/upgraded it to the latest version? I see that bmnet.dll is missing, and that being an LSP can interfere with your net access. Google some information on it if you have a problem there. You may need to run LSP-Fix. If you no longer use the pgm then uninstall it and also check the last two items on the fix list.

Reboot your computer into Safe Mode - [ Press F8 several times while POST runs and before it finishes detecting your IDE drives...] and log in as an administrator. You now have a black screen with your icons etc...
Rightclick on Start, lclick explore, go tools > folder options > view, and select Show hidden files and folders, Apply.
Start Hijackthis as before and do a scan, then check these first two items for fixing-

O4 - HKCU\..\Run: [mschkdsk.exe] C:\WINDOWS\system32\mschkdsk.exe
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)

- check these next two for fixing depending upon whether you use bytemobile or not...

C:\WINDOWS\system32\bmwebcfg.exe
O10 - Broken Internet access because of LSP provider 'bmnet.dll' missing

and run the fix. Now reboot into normal mode and see if things have improved...
Java update!! Go control panel > java > update, press update now. Then when it completes go into add/remove pgms and delete the old version. Version 5.10 is available now. May i warn you to do the custom installation if you wish to decline extra desktop junk -- the google seach toolbar?

Logfile of HijackThis v1.99.1
Scan saved at 10:03:37 AM, on 1/30/2007
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)
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\digtizer.exe
C:\WINDOWS\Identd.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\MDM.EXE
C:\NORMAN\bin\zanda.exe
C:\WINDOWS\system32\slClient.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Viewpoint\Common\ViewpointService.exe
C:\Program Files\Common Files\Microsoft Shared\Ink\KeyboardSurrogate.exe
C:\WINDOWS\SYSTEM32\WISPTIS.EXE
C:\WINDOWS\System32\tabbtnu.exe
C:\WINDOWS\system32\ctfmon.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Common Files\Microsoft Shared\Ink\TCServer.exe
C:\WINDOWS\system32\hkcmd.exe
C:\WINDOWS\AGRSMMSG.exe
C:\Program Files\Fujitsu\Utils\fjevents.exe
C:\Program Files\Fujitsu\Utils\FjDspMon.exe
C:\Program Files\Fujitsu\Utils\FjMnuIco.exe
C:\Program Files\Fujitsu\Fujitsu Hotkey Utility\IndicatorUty.exe
C:\Program Files\Fujitsu\BtnHnd\BtnHnd.exe
C:\Program Files\Apoint2K\Apoint.exe
C:\NORMAN\bin\ZLH.EXE
C:\Program Files\Picasa2\PicasaMediaDetector.exe
C:\Program Files\Java\jre1.5.0_03\bin\jusched.exe
C:\Program Files\FarStone\VirtualDrive\VHD\RDTask.exe
C:\Program Files\FarStone\VirtualDrive\VDTask.exe
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\AIM\aim.exe
C:\Program Files\Google\Google Talk\googletalk.exe
C:\Program Files\Common Files\Microsoft Shared\Ink\TabTip.exe
C:\WINDOWS\system32\igfxext.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktopIndex.exe
C:\Program Files\Common Files\AOL\1156275623\ee\AOLHostManager.exe
C:\Program Files\Common Files\AOL\1156275623\ee\AOLServiceHost.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktopDisplay.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\Program Files\Apoint2K\Apntex.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktopCrawl.exe
C:\Program Files\Apoint2K\HidFind.exe
C:\Program Files\Common Files\AOL\1156275623\ee\AOLServiceHost.exe
C:\Program Files\Viewpoint\Viewpoint Manager\ViewMgr.exe
C:\Program Files\Adobe\Acrobat 7.0\Reader\AcroRd32.exe
C:\Program Files\Windows Journal\Journal.exe
C:\Documents and Settings\pittsj\Desktop\687474702s3231362r3138302r3233332r3136322s7r6q6572696n6r2s66696p65732s48696n61636o546869732r657865.exe
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = about:
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.frastudents.com/
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = 63.208.226.219:80
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 5.0\Acrobat\ActiveX\AcroIEHelper.ocx (file missing)
O4 - HKLM\..\Run: [TabletWizard] C:\WINDOWS\help\SplshWrp.exe
O4 - HKLM\..\Run: [TabletTip] "C:\Program Files\Common Files\microsoft shared\ink\tabtip.exe" /resume
O4 - HKLM\..\Run: [HotKeysCmds] C:\WINDOWS\system32\hkcmd.exe
O4 - HKLM\..\Run: [AGRSMMSG] AGRSMMSG.exe
O4 - HKLM\..\Run: [FjEvents] c:\Program Files\Fujitsu\Utils\fjevents.exe
O4 - HKLM\..\Run: [FjDspMon] c:\Program Files\Fujitsu\Utils\FjDspMon.exe
O4 - HKLM\..\Run: [Fujitsu Menu] c:\Program Files\Fujitsu\Utils\FjMnuIco.exe
O4 - HKLM\..\Run: [IndicatorUtility] C:\Program Files\Fujitsu\Fujitsu Hotkey Utility\IndicatorUty.exe
O4 - HKLM\..\Run: [LoadBtnHnd] C:\Program Files\Fujitsu\BtnHnd\BtnHnd.exe
O4 - HKLM\..\Run: [Apoint] C:\Program Files\Apoint2K\Apoint.exe
O4 - HKLM\..\Run: [Snippet] "C:\Program Files\Microsoft Experience Pack\Snipping Tool\SnippingTool.exe" /i
O4 - HKLM\..\Run: [Norman ZANDA] C:\NORMAN\bin\ZLH.EXE /LOAD /SPLASH
O4 - HKLM\..\Run: [Picasa Media Detector] C:\Program Files\Picasa2\PicasaMediaDetector.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] C:\Program Files\Java\jre1.5.0_03\bin\jusched.exe
O4 - HKLM\..\Run: [RAMDrive] "C:\Program Files\FarStone\VirtualDrive\VHD\RDTask.exe"
O4 - HKLM\..\Run: [VirtualDrive] "C:\Program Files\FarStone\VirtualDrive\VDTask.exe" /AutoRestore
O4 - HKLM\..\Run: [HostManager] C:\Program Files\Common Files\AOL\1156275623\ee\AOLHostManager.exe
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [Google Desktop Search] "C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe" /startup
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [AIM] C:\Program Files\AIM\aim.exe -cnetwait.odl
O4 - HKCU\..\Run: [googletalk] "C:\Program Files\Google\Google Talk\googletalk.exe" /autostart
O4 - HKCU\..\Run: [Windows installer] C:\winstall.exe
O4 - Startup: Adobe Gamma.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Startup: Microsoft Office OneNote 2003 Quick Launch.lnk = C:\Program Files\Microsoft Office\OFFICE11\ONENOTEM.EXE
O4 - Startup: Stardock ObjectDock.lnk = C:\Program Files\Stardock\ObjectDock\ObjectDock.exe
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.DLL
O9 - Extra button: AIM - {AC9E2541-2814-11d5-BC6D-00B0D0A1DE45} - C:\Program Files\AIM\aim.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: {5F8469B4-B055-49DD-83F7-62B522420ECC} (Facebook Photo Uploader Control) - http://upload.facebook.com/controls/...toUploader.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://v5.windowsupdate.microsoft.co...?1114025444192
O17 - HKLM\System\CCS\Services\Tcpip\Parameters: Domain = Academy.frapanthers.com
O17 - HKLM\Software\..\Telephony: DomainName = Academy.frapanthers.com
O17 - HKLM\System\CS1\Services\Tcpip\Parameters: Domain = Academy.frapanthers.com
O17 - HKLM\System\CS2\Services\Tcpip\Parameters: Domain = Academy.frapanthers.com
O20 - AppInit_DLLs: C:\PROGRA~1\Google\GOOGLE~3\GOEC62~1.DLL
O20 - Winlogon Notify: igfxcui - C:\WINDOWS\SYSTEM32\igfxsrvc.dll
O20 - Winlogon Notify: loginkey - C:\Program Files\Common Files\Microsoft Shared\Ink\loginkey.dll
O20 - Winlogon Notify: TabBtnWL - C:\WINDOWS\SYSTEM32\TabBtnWL.dll
O20 - Winlogon Notify: tpgwlnotify - C:\WINDOWS\SYSTEM32\tpgwlnot.dll
O21 - SSODL: WPDShServiceObj - {AAA288BA-9A4C-45B0-95D7-94D524869DB5} - C:\WINDOWS\system32\WPDShServiceObj.dll
O23 - Service: Adobe LM Service - Adobe Systems - C:\Program Files\Common Files\Adobe Systems Shared\Service\Adobelmsvc.exe
O23 - Service: CounterSpyAgent - Sunbelt Software - C:\Program Files\Sunbelt Software\CounterSpy\Agent\CounterSpyAgent.exe
O23 - Service: Digitizer Service (Digitizer) - WACOM - C:\WINDOWS\System32\digtizer.exe
O23 - Service: GoogleDesktopManager - Google - C:\Program Files\Google\Google Desktop Search\GoogleDesktopManager.exe
O23 - Service: Identd RFC931/1413 service (identd) - Unknown owner - C:\WINDOWS\Identd.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Norman NJeeves - Unknown owner - C:\NORMAN\bin\NJEEVES.EXE
O23 - Service: Norman ZANDA - Unknown owner - C:\NORMAN\bin\zanda.exe
O23 - Service: Norman Virus Control on-access component (nvcoas) - Norman ASA - C:\NORMAN\Nvc\bin\nvcoas.exe
O23 - Service: Norman Virus Control Scheduler (NVCScheduler) - Norman Data Defense Systems - C:\NORMAN\Nvc\BIN\NVCSCHED.EXE
O23 - Service: ScriptLogic Service (SLClient) - ScriptLogic Corporation - C:\WINDOWS\system32\slClient.exe
O23 - Service: Viewpoint Manager Service - Viewpoint Corporation - C:\Program Files\Viewpoint\Common\ViewpointService.exe

what do you do after this?

After that, well, you get rid of SpySherriff.
==Download SmitfraudFix (by S!Ri) from http://siri.urz.free.fr/Fix/SmitfraudFix.zip
Extract the content (a folder named SmitfraudFix) to your Desktop.
==Get CCleaner from http://www.ccleaner.com/ - and put it in a new folder. You should aim to keep this one for general use. I set it from the install checkboxes to only open from the recycle bin. It's neater that way.

Now run Ccleaner from the recycle bin rclick menu using its default settings [if you set up CCleaner as i suggested, rclicking the bin icon should give you the Open CCleaner option...]. Select the Cleaner icon and the Windows tab; press Run Cleaner. Next select the Applications tab and Run Cleaner again.

Before the next step memorise these instructions... or copy them to notepad.
Ok, you're done with the net. Shut it down.
Check that a Restore point has been made. The path to this is via Start > all programs > accessories > system tools> system restore.
==Restart your computer in Safe Mode:- press F8 several times while POST is running and before IDE detection completes.
- On the Windows Advanced Options Menu, select Safe Mode and press Enter.
- When the Boot Menu appears again, select Microsoft Windows XP and press Enter.
- Log in by using the Administrator account and password. NOTE: The password is blank by default unless you set a password.
Note: Close all open windows, and DO NOT USE the computer while these scans are running.
- Open the SmitfraudFix folder and double-click smitfraudfix.cmd, select option #1 - Search [type 1 and Enter]. A text file will appear which lists infected files (if present). It will also create a log named rapport.txt in the root of your drive, eg: Local Disk C:.. Please paste the report in your next reply. DO NOT RUN OPTION 2 YET!!!

When you are finished reboot to normal Windows mode and send that Smitfraud log in....

Have you managed to fix your blue background problem yet Eichler34 ? I see there have been some very helpful people trying to solve this problem for you. If your problem is still not fixed i have a few ideas.

1. Cannot change desktop wallpaper very helpful guide that’s one thing to try

2. cannot change desktop background another nicely detailed guide to change background if you are blocked from doing so.

Hopefully this helps and you get your problem fixed good luck

After 30 months I would imagine it is fixed.
Nice signature too.