Okay... No reply yet but I have solved few problems. Now I have access to my task manager again and also the annoying fake-warnings from the taskbar have ended. I found the kernels8.exe from the windows folder and deleted it.

Still my desktop wallpaper is locked. Can anyone help with that?

Please download SmitfraudFix (by S!Ri)
Extract the content (a folder named SmitfraudFix) to your Desktop.

Open the SmitfraudFix folder and double-click smitfraudfix.cmd
Select option #1 - Search by typing 1 and press "Enter"; a text file will appear, which lists infected files (if present).
Please copy/paste the content of that report into your next reply.

Note : process.exe is detected by some antivirus programs (AntiVir, Dr.Web, Kaspersky) as a "RiskTool"; it is not a virus, but a program used to stop system processes. Antivirus programs cannot distinguish between "good" and "malicious" use of such programs, therefore they may alert the user.
http://www.beyondlogic.org/consulting/proc...processutil.htm

Thank you for the reply. Here are results of the scan:

---------------

SmitFraudFix v2.144

Scan done at 19:03:18,06, ma 26.02.2007
Run from C:\Documents and Settings\Jari\Desktop\SmitfraudFix
OS: Microsoft Windows XP [Version 5.1.2600] - Windows_NT
The filesystem type is NTFS
Fix run in normal mode

»»»»»»»»»»»»»»»»»»»»»»»» hosts


»»»»»»»»»»»»»»»»»»»»»»»» C:\


»»»»»»»»»»»»»»»»»»»»»»»» C:\WINDOWS

C:\WINDOWS\xpupdate.exe FOUND !

»»»»»»»»»»»»»»»»»»»»»»»» C:\WINDOWS\system


»»»»»»»»»»»»»»»»»»»»»»»» C:\WINDOWS\Web


»»»»»»»»»»»»»»»»»»»»»»»» C:\WINDOWS\system32


»»»»»»»»»»»»»»»»»»»»»»»» C:\Documents and Settings\Jari


»»»»»»»»»»»»»»»»»»»»»»»» C:\Documents and Settings\Jari\Application Data

C:\Documents and Settings\Jari\Application Data\Install.dat FOUND !

»»»»»»»»»»»»»»»»»»»»»»»» Start Menu


»»»»»»»»»»»»»»»»»»»»»»»» C:\DOCUME~1\Jari\FAVORI~1


»»»»»»»»»»»»»»»»»»»»»»»» Desktop


»»»»»»»»»»»»»»»»»»»»»»»» C:\Program Files

C:\Program Files\BraveSentry\ FOUND !

»»»»»»»»»»»»»»»»»»»»»»»» Corrupted keys


»»»»»»»»»»»»»»»»»»»»»»»» Desktop Components

[HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Desktop\Components\0]
"Source"="about:Home"
"SubscribedURL"="about:Home"
"FriendlyName"="My Current Home Page"


»»»»»»»»»»»»»»»»»»»»»»»» Sharedtaskscheduler
!!!Attention, following keys are not inevitably infected!!!

SrchSTS.exe by S!Ri
Search SharedTaskScheduler's .dll


»»»»»»»»»»»»»»»»»»»»»»»» AppInit_DLLs
!!!Attention, following keys are not inevitably infected!!!

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Windows]
"AppInit_DLLs"=""


»»»»»»»»»»»»»»»»»»»»»»»» Winlogon.System
!!!Attention, following keys are not inevitably infected!!!

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon]
"System"=""


»»»»»»»»»»»»»»»»»»»»»»»» pe386-msguard-lzx32-huy32


»»»»»»»»»»»»»»»»»»»»»»»» Scanning wininet.dll infection


»»»»»»»»»»»»»»»»»»»»»»»» End

You should print out these instructions, or copy them to a Notepad file for reading while in Safe Mode, because you will not be able to connect to the Internet to read from this site.

Please reboot your computer in Safe Mode by doing the following :

• Restart your computer
• After hearing your computer beep once during startup, but before the Windows icon appears, tap the F8 key continually;
• Instead of Windows loading as normal, a menu with options should appear;
• Select the first option, to run Windows in Safe Mode, then press "Enter".
• Choose your usual account.

Once in Safe Mode, open the SmitfraudFix folder again and double-click smitfraudfix.cmd
Select option #2 - Clean by typing 2 and press "Enter" to delete infected files.

You will be prompted : "Registry cleaning - Do you want to clean the registry ?"; answer "Yes" by typing Y and press "Enter" in order to remove the Desktop background and clean registry keys associated with the infection.

The tool will now check if wininet.dll is infected. You may be prompted to replace the infected file (if found); answer "Yes" by typing Y and press "Enter".


The tool may need to restart your computer to finish the cleaning process; if it doesn't, please restart anyway into normal Windows. A text file will appear onscreen, with results from the cleaning process; please copy/paste the content of that report into your next reply along with a new HijackThis log.
The report can also be found at the root of the system drive, usually at C:\rapport.txt

Warning : running option #2 on a non infected computer will remove your Desktop background.

Also, you are running a very old version of HijackThis on your unpatched system. You should install the latest version of HJT. (v1.99.1)
And, while you are at it, please RENAME HijackThis.exe to goodscan.exe so certain malware cannot hide from it.

-- Crunchie will tell you which Windows Updates to obtain. Installing SP2 right now may do more damage than good, so wait for those instructions.

Cheers
PP

Okay, I followed your instructions and here are the results of the scans:

--------

SmitFraudFix v2.144

Scan done at 22:47:51,65, ma 26.02.2007
Run from C:\Documents and Settings\Jari\Desktop\SmitfraudFix
OS: Microsoft Windows XP [Version 5.1.2600] - Windows_NT
The filesystem type is NTFS
Fix run in safe mode

»»»»»»»»»»»»»»»»»»»»»»»» SharedTaskScheduler Before SmitFraudFix
!!!Attention, following keys are not inevitably infected!!!

SrchSTS.exe by S!Ri
Search SharedTaskScheduler's .dll

»»»»»»»»»»»»»»»»»»»»»»»» Killing process


»»»»»»»»»»»»»»»»»»»»»»»» hosts


127.0.0.1 localhost

»»»»»»»»»»»»»»»»»»»»»»»» Generic Renos Fix

GenericRenosFix by S!Ri


»»»»»»»»»»»»»»»»»»»»»»»» Deleting infected files

C:\WINDOWS\xpupdate.exe Deleted
C:\Documents and Settings\Jari\Application Data\Install.dat Deleted
C:\Program Files\BraveSentry\ Deleted

»»»»»»»»»»»»»»»»»»»»»»»» Deleting Temp Files


»»»»»»»»»»»»»»»»»»»»»»»» Winlogon.System
!!!Attention, following keys are not inevitably infected!!!

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon]
"System"=""


»»»»»»»»»»»»»»»»»»»»»»»» Registry Cleaning

Registry Cleaning done.

»»»»»»»»»»»»»»»»»»»»»»»» SharedTaskScheduler After SmitFraudFix
!!!Attention, following keys are not inevitably infected!!!

SrchSTS.exe by S!Ri
Search SharedTaskScheduler's .dll


»»»»»»»»»»»»»»»»»»»»»»»» End

--------

Logfile of HijackThis v1.99.1
Scan saved at 22:54:43, on 26.2.2007
Platform: Windows XP (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 (6.00.2600.0000)

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:\PROGRA~1\F-Secure\BackWeb\7681197\Program\SERVIC~1.EXE
C:\WINDOWS\System32\CTSvcCDA.EXE
C:\Program Files\F-Secure\Anti-Virus\fsgk32st.exe
C:\Program Files\F-Secure\BackWeb\7681197\program\fsbwsys.exe
C:\Program Files\F-Secure\Anti-Virus\FSGK32.EXE
C:\Program Files\F-Secure\Common\FSMA32.EXE
C:\WINDOWS\System32\nvsvc32.exe
C:\Program Files\F-Secure\Common\FSMB32.EXE
C:\Program Files\F-Secure\Anti-Virus\fssm32.exe
C:\Program Files\PC Tools AntiVirus\PCTAVSvc.exe
C:\Program Files\F-Secure\Common\FCH32.EXE
C:\Program Files\F-Secure\Common\FAMEH32.EXE
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\MsPMSPSv.exe
C:\Program Files\F-Secure\Common\FNRB32.EXE
C:\Program Files\F-Secure\FWES\Program\fsdfwd.exe
C:\Program Files\F-Secure\Anti-Virus\fsav32.exe
C:\Program Files\F-Secure\Common\FIH32.EXE
C:\WINDOWS\Explorer.EXE
C:\Program Files\F-Secure\Common\FSM32.EXE
C:\Program Files\Logitech\iTouch\iTouch.exe
C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe
C:\Program Files\WinPortrait\wpctrl.exe
C:\Program Files\MusicMatch\MusicMatch Jukebox\mmtask.exe
C:\Program Files\MUSICMATCH\MUSICMATCH Jukebox\mm_tray.exe
C:\WINDOWS\soundman.exe
C:\WINDOWS\System32\LVCOMSX.EXE
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\Logitech\Video\LogiTray.exe
C:\Program Files\Logitech\MouseWare\system\em_exec.exe
C:\Program Files\Adobe\Photoshop Album Starter Edition\3.0\Apps\apdproxy.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\WinPortrait\floater.exe
C:\Program Files\F-Secure\BackWeb\7681197\Program\BackWeb-7681197.exe
C:\Program Files\PC Tools AntiVirus\PCTAV.exe
C:\WINDOWS\System32\ctfmon.exe
C:\WINDOWS\System32\RUNDLL32.EXE
C:\Program Files\PokerOffice\bin\javaw.exe
C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
C:\Program Files\Logitech\Harmony Remote\HarmonyClient.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\Program Files\Nikon\PictureProject\NkbMonitor.exe
C:\Program Files\WinZip\WZQKPICK.EXE
C:\Program Files\Logitech\Video\FxSvr2.exe
C:\WINDOWS\System32\wuauclt.exe
C:\HiJack\goodscan.exe

R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = localhost
O2 - BHO: Yahoo! Toolbar Helper - {02478D38-C3F9-4EFB-9B51-7695ECA05670} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar1.dll
O3 - Toolbar: &Radio - {8E718888-423F-11D2-876E-00A0C9082467} - C:\WINDOWS\System32\msdxm.ocx
O3 - Toolbar: MSN-työkalurivi - {BDAD1DAD-C946-4A17-ADC1-64B5B4FF55D0} - C:\Program Files\MSN Toolbar\01.01.2607.0\fi\msntb.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar1.dll
O4 - HKLM\..\Run: [F-Secure Manager] "C:\Program Files\F-Secure\Common\FSM32.EXE" /splash
O4 - HKLM\..\Run: [F-Secure TNB] "C:\Program Files\F-Secure\TNB\TNBUtil.exe" /CHECKALL
O4 - HKLM\..\Run: [NvCplDaemon] "RUNDLL32.EXE" C:\WINDOWS\System32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [nwiz] "nwiz.exe" /install
O4 - HKLM\..\Run: [zBrowser Launcher] "C:\Program Files\Logitech\iTouch\iTouch.exe"
O4 - HKLM\..\Run: [Logitech Utility] Logi_MwX.Exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe"
O4 - HKLM\..\Run: [PivotSoftware] "C:\Program Files\WinPortrait\wpctrl.exe"
O4 - HKLM\..\Run: [mmtask] "c:\Program Files\MusicMatch\MusicMatch Jukebox\mmtask.exe"
O4 - HKLM\..\Run: [MMTray] "C:\Program Files\MUSICMATCH\MUSICMATCH Jukebox\mm_tray.exe"
O4 - HKLM\..\Run: [SoundMan] soundman.exe
O4 - HKLM\..\Run: [LVCOMSX] C:\WINDOWS\System32\LVCOMSX.EXE
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
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: [NeroCheck] C:\WINDOWS\system32\NeroCheck.exe
O4 - HKLM\..\Run: [Adobe Photo Downloader] "C:\Program Files\Adobe\Photoshop Album Starter Edition\3.0\Apps\apdproxy.exe"
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [POEngine] "C:\Program Files\PokerOffice\POEngine.exe" C:\Program Files\PokerOffice
O4 - HKLM\..\Run: [PCTAVApp] "C:\Program Files\PC Tools AntiVirus\PCTAV.exe" /MONITORSCAN
O4 - HKCU\..\Run: [CTFMON.EXE] C:\WINDOWS\System32\ctfmon.exe
O4 - HKCU\..\Run: [NvMediaCenter] "RUNDLL32.EXE" C:\WINDOWS\System32\NVMCTRAY.DLL,NvTaskbarInit
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: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: Logitech Desktop Messenger.lnk = C:\Program Files\Logitech\Desktop Messenger\8876480\Program\LDMConf.exe
O4 - Global Startup: Logitech Harmony Remote V5.lnk = C:\Program Files\Logitech\Harmony Remote\HarmonyClient.exe
O4 - Global Startup: NkbMonitor.exe.lnk = C:\Program Files\Nikon\PictureProject\NkbMonitor.exe
O4 - Global Startup: WinZip Quick Pick.lnk = C:\Program Files\WinZip\WZQKPICK.EXE
O8 - Extra context menu item: &Google Search - res://c:\program files\google\GoogleToolbar1.dll/cmsearch.html
O8 - Extra context menu item: &Translate English Word - res://c:\program files\google\GoogleToolbar1.dll/cmwordtrans.html
O8 - Extra context menu item: Backward Links - res://c:\program files\google\GoogleToolbar1.dll/cmbacklinks.html
O8 - Extra context menu item: Cached Snapshot of Page - res://c:\program files\google\GoogleToolbar1.dll/cmcache.html
O8 - Extra context menu item: Similar Pages - res://c:\program files\google\GoogleToolbar1.dll/cmsimilar.html
O8 - Extra context menu item: Translate Page into English - res://c:\program files\google\GoogleToolbar1.dll/cmtrans.html
O8 - Extra context menu item: Vie Microsoft E&xceliin - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O9 - Extra button: BetOnBet Poker - {2B936D2B-EDD7-405f-9057-3685BE897E62} - C:\Program Files\betonbetMPP\MPPoker.exe
O9 - Extra button: VC Poker - {40B2063F-DB01-4962-BE63-59435C01283C} - C:\PROGRA~1\VCPOKE~1\client.exe
O9 - Extra button: 32Red Poker - {437F7F6F-FFCC-47e1-8A4B-C992493CF6C3} - C:\Program Files\32RedMPP\MPPoker.exe
O9 - Extra button: All In Poker - {7FD14A80-30CB-434e-90A3-DEC1B1EA2014} - C:\Program Files\allinpokerMPP\MPPoker.exe
O9 - Extra button: Oheistiedot - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.DLL
O9 - Extra button: bet365 Poker - {B1BA4A3F-1C95-497b-9F82-F8DA4A5C89DD} - C:\Program Files\bet365MPP\MPPoker.exe
O9 - Extra button: PartyPoker.com - {B7FE5D70-9AA2-40F1-9C6B-12A255F085E1} - C:\Program Files\PartyGaming\PartyPoker\RunApp.exe
O9 - Extra 'Tools' menuitem: PartyPoker.com - {B7FE5D70-9AA2-40F1-9C6B-12A255F085E1} - C:\Program Files\PartyGaming\PartyPoker\RunApp.exe
O9 - Extra button: Ladbrokes Poker - {C2A80015-C447-4dc4-82DD-AED83D6ED57E} - C:\Program Files\ladbrokesMPP\MPPoker.exe
O9 - Extra button: Unibet Poker - {C53BFCFC-7A54-4627-AEBA-2CD4871FCA97} - C:\Program Files\UnibetpokerMPP\MPPoker.exe
O9 - Extra button: Related - {c95fe080-8f5d-11d2-a20b-00aa003c157a} - C:\WINDOWS\web\related.htm
O9 - Extra 'Tools' menuitem: Show &Related Links - {c95fe080-8f5d-11d2-a20b-00aa003c157a} - C:\WINDOWS\web\related.htm
O9 - Extra button: MANSION - {CD03D14B-0EF6-4f5a-BB81-1ECAFFC676AF} - C:\Program Files\MANSION\Villa\MANSION.exe
O9 - Extra 'Tools' menuitem: MANSION - {CD03D14B-0EF6-4f5a-BB81-1ECAFFC676AF} - C:\Program Files\MANSION\Villa\MANSION.exe
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O10 - Unknown file in Winsock LSP: c:\program files\common files\pc tools\lsp\pctlsp.dll
O16 - DPF: {4F1E5B1A-2A80-42CA-8532-2D05CB959537} (MSN Photo Upload Tool) - http://groups.msn.com/controls/PhotoUC/MsnPUpld.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://update.microsoft.com/windowsu...?1136498450514
O16 - DPF: {B38870E4-7ECB-40DA-8C6A-595F0A5519FF} (MsnMessengerSetupDownloadControl Class) - http://messenger.msn.com/download/Ms...Downloader.cab
O18 - Protocol: livecall - {828030A1-22C1-4009-854F-8E305202313F} - C:\PROGRA~1\MSNMES~1\MSGRAP~1.DLL
O18 - Protocol: msnim - {828030A1-22C1-4009-854F-8E305202313F} - C:\PROGRA~1\MSNMES~1\MSGRAP~1.DLL
O20 - Winlogon Notify: WRNotifier - WRLogonNTF.dll (file missing)
O23 - Service: Adobe LM Service - Unknown owner - C:\Program Files\Common Files\Adobe Systems Shared\Service\Adobelmsvc.exe
O23 - Service: F-Secure Automatic Update (BackWeb Client - 7681197) - Unknown owner - C:\PROGRA~1\F-Secure\BackWeb\7681197\Program\SERVIC~1.EXE
O23 - Service: Creative Service for CDROM Access - Creative Technology Ltd - C:\WINDOWS\System32\CTSvcCDA.EXE
O23 - Service: F-Secure Gatekeeper Handler Starter - F-Secure Corp. - C:\Program Files\F-Secure\Anti-Virus\fsgk32st.exe
O23 - Service: F-Secure Network Request Broker - F-Secure Corporation - C:\Program Files\F-Secure\Common\FNRB32.EXE
O23 - Service: fsbwsys - F-Secure Corp. - C:\Program Files\F-Secure\BackWeb\7681197\program\fsbwsys.exe
O23 - Service: F-Secure Anti-Virus Firewall Daemon (FSDFWD) - F-Secure Corporation - C:\Program Files\F-Secure\FWES\Program\fsdfwd.exe
O23 - Service: F-Secure Management Agent (FSMA) - F-Secure Corporation - C:\Program Files\F-Secure\Common\FSMA32.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: NVIDIA Driver Helper Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\System32\nvsvc32.exe
O23 - Service: PC Tools AntiVirus Engine (PCTAVSvc) - PC Tools Research Pty Ltd - C:\Program Files\PC Tools AntiVirus\PCTAVSvc.exe

--------

No I can control my desktop again so looks like that problem is solved.

Good news . As Philliephan pointed out though, you need to get the MS updates now to help keep your system secure.

Please go here & install ALL critical updates required for your system, including service pack 1a for both XP and IE6.
Most malware is designed to attack unpatched XP systems - exploiting the available 'holes' - and can bypass third-party protection on an unpatched system. Your system can potentially be reinfected within minutes of cleaning it.