Step 1: Remove either Symantec or AVG AV - very important.
Step 2: Get HostsXpert from www.funkytoad.com, start it, press Restore MS hosts file button.
Do your scans and post another HT log.

Thanks Gerbil,
Just checking before i do. Avg free has not worked ( can not initialise at start up) since i did a system restore in the middle of an upgrade some time back, and will not let me uninstall it either. NAV is the only protection i feel i have at present when online. Can i disable it, or do i have to do a full uninstall. Can i download HostsXpert before i uninstall nav? Cheers - davo8

Davo, if you look at your log you see a looong list of O1 entries - they have been put there by your malware to block you from contacting those sites eg when AVG AV tries to contact home it gets redirected inside your sys, to your sys. So nothing happens and AVG won't update and so will not run. Run hostsxpert, it will remove those entries, and then you should try AVG again; if it will still not run you will be free now to go back to the AVG site and get a fresh copy. Just break what you have by deleting some of the AVG pgm files and then install over the top. If you have windows firewall running when you go to those two sites you will be safe.
Say how you go.

G'day Gerbil,
Cannot uninstall nav - keeps failing. Will download nav removal tool from work computer tomorrow and try again. Thanks for your patience. Seeyou then - Davo8

Oh, you can do the hosts thing before you remove NAV or AVG....

Done! Seems fine now but i havn't given everything a full workout. Sites are all accessable. Here's new HJT log.
Thanks heaps - Davo8

Logfile of Trend Micro HijackThis v2.0.0 (BETA)
Scan saved at 5:52:34 AM, on 6/19/2007
Platform: Windows XP SP2 (WinNT 5.01.2600)
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:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe
C:\Program Files\Common Files\LightScribe\LSSrvc.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\system32\carpserv.exe
C:\Program Files\QuickTime\qttask.exe
C:\WINDOWS\vsnpstd.exe
C:\Program Files\dvd43\dvd43_tray.exe
C:\WINDOWS\SOUNDMAN.EXE
C:\Program Files\Java\jre1.6.0_01\bin\jusched.exe
C:\Program Files\ASUSTeK\ASUSDVD\PDVDServ.exe
C:\Program Files\Google\GoogleToolbarNotifier\1.2.1128.5462\GoogleToolbarNotifier.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Uniblue\RegistryBooster 2\RegistryBooster.exe
C:\Program Files\Hewlett-Packard\Digital Imaging\bin\hpohmr08.exe
C:\Program Files\Hewlett-Packard\Digital Imaging\bin\hpotdd01.exe
C:\Program Files\Common Files\Sonic Shared\CineTray.exe
C:\Program Files\WinZip\WZQKPICK.EXE
C:\Program Files\Hewlett-Packard\Digital Imaging\bin\hpoevm08.exe
C:\Documents and Settings\dad\My Documents\HiJackThis_v2\HiJackThis_v2.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://www.aapt.net.au/
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.aapt.net.au/
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://www.aapt.net.au/
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://www.aapt.net.au/
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,SearchAssistant =
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,CustomizeSearch =
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Window Title = Microsoft Internet Explorer provided by AAPT
O2 - BHO: Yahoo! Toolbar Helper - {02478D38-C3F9-4EFB-9B51-7695ECA05670} - C:\Program Files\Yahoo!\Companion\Installs\cpn0\yt.dll
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: (no name) - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.6.0_01\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
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar1.dll
O2 - BHO: Windows Live Toolbar Helper - {BDBD1DAD-C946-4A17-ADC1-64B5B4FF55D0} - C:\Program Files\Windows Live Toolbar\msntb.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn0\yt.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar1.dll
O3 - Toolbar: Windows Live Toolbar - {BDAD1DAD-C946-4A17-ADC1-64B5B4FF55D0} - C:\Program Files\Windows Live Toolbar\msntb.dll
O4 - HKLM\..\Run: [SiSUSBRG] C:\WINDOWS\SiSUSBrg.exe
O4 - HKLM\..\Run: [CARPService] carpserv.exe
O4 - HKLM\..\Run: [SchedulingAgent] mstinit.exe /firstlogon
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [snpstd] C:\WINDOWS\vsnpstd.exe
O4 - HKLM\..\Run: [dvd43] C:\Program Files\dvd43\dvd43_tray.exe
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe /STARTUP
O4 - HKLM\..\Run: [SoundMan] SOUNDMAN.EXE
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre1.6.0_01\bin\jusched.exe"
O4 - HKLM\..\Run: [NeroFilterCheck] C:\WINDOWS\system32\NeroCheck.exe
O4 - HKLM\..\Run: [RemoteControl] "C:\Program Files\ASUSTeK\ASUSDVD\PDVDServ.exe"
O4 - HKLM\..\Run: [eTrustPPAP] "C:\Program Files\CA\eTrust Internet Security Suite\eTrust PestPatrol Anti-Spyware\PPActiveDetection.exe"
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\1.2.1128.5462\GoogleToolbarNotifier.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [NBJ] "C:\Program Files\Ahead\Nero BackItUp\NBJ.exe"
O4 - HKCU\..\Run: [Uniblue RegistryBooster2] C:\Program Files\Uniblue\RegistryBooster 2\RegistryBooster.exe /S
O4 - HKUS\S-1-5-19\..\Run: [AVG7_Run] C:\PROGRA~1\Grisoft\AVGFRE~1\avgw.exe /RUNONCE (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-20\..\Run: [AVG7_Run] C:\PROGRA~1\Grisoft\AVGFRE~1\avgw.exe /RUNONCE (User 'NETWORK SERVICE')
O4 - HKUS\S-1-5-18\..\Run: [AVG7_Run] C:\PROGRA~1\Grisoft\AVGFRE~1\avgw.exe /RUNONCE (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [AVG7_Run] C:\PROGRA~1\Grisoft\AVGFRE~1\avgw.exe /RUNONCE (User 'Default user')
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: hp psc 1000 series.lnk = ?
O4 - Global Startup: hpoddt01.exe.lnk = ?
O4 - Global Startup: Microsoft Office.lnk = C:\Program Files\Microsoft Office\Office10\OSA.EXE
O4 - Global Startup: Sonic CinePlayer Quick Launch.lnk = C:\Program Files\Common Files\Sonic Shared\CineTray.exe
O4 - Global Startup: WinZip Quick Pick.lnk = C:\Program Files\WinZip\WZQKPICK.EXE
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_01\bin\npjpi160_01.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_01\bin\npjpi160_01.dll
O9 - Extra button: Panda ActiveScan - {653D93AF-C741-4e5e-8C1B-59BA43F93E16} - http://www.pandasoftware.com/activescan (file missing)
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.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
O14 - IERESET.INF: START_PAGE_URL=http://www.aapt.net.au/
O16 - DPF: {00B71CFB-6864-4346-A978-C0A14556272C} (Checkers Class) - http://messenger.zone.msn.com/binary...r.cab31267.cab
O16 - DPF: {1F2F4C9E-6F09-47BC-970D-3C54734667FE} (LSSupCtl Class) - http://www.symantec.com/techsupp/asa/ctrl/LSSupCtl.cab
O16 - DPF: {3451DEDE-631F-421C-8127-FD793AFC6CC8} (ActiveDataInfo Class) - http://www.symantec.com/techsupp/asa/ctrl/SymAData.cab
O16 - DPF: {44990200-3C9D-426D-81DF-AAB636FA4345} (Symantec SmartIssue) - http://www.symantec.com/techsupp/asa/ctrl/tgctlsi.cab
O16 - DPF: {44990301-3C9D-426D-81DF-AAB636FA4345} (Symantec Script Runner Class) - http://www.symantec.com/techsupp/asa/ctrl/tgctlsr.cab
O16 - DPF: {4CCA4E80-9259-11D9-AC6E-444553544200} (FixController Control) - http://h30155.www3.hp.com/ediags/dd/...lMgr_v01_5.cab
O16 - DPF: {4F1E5B1A-2A80-42CA-8532-2D05CB959537} (MSN Photo Upload Tool) - http://spaces.msn.com//PhotoUpload/MsnPUpld.cab
O16 - DPF: {5D6F45B3-9043-443D-A792-115447494D24} (UnoCtrl Class) - http://messenger.zone.msn.com/EN-US/.../GAME_UNO1.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://update.microsoft.com/windowsu...?1155920646062
O16 - DPF: {6E32070A-766D-4EE6-879C-DC1FA91D2FC3} (MUWebControl Class) - http://update.microsoft.com/microsof...?1155975948281
O16 - DPF: {8E0D4DE5-3180-4024-A327-4DFAD1796A8D} (MessengerStatsClient Class) - http://messenger.zone.msn.com/binary...t.cab31267.cab
O16 - DPF: {B38870E4-7ECB-40DA-8C6A-595F0A5519FF} (MsnMessengerSetupDownloadControl Class) - http://messenger.msn.com/download/Ms...Downloader.cab
O16 - DPF: {F6BF0D00-0B2A-4A75-BF7B-F385591623AF} (Solitaire Showdown Class) - http://messenger.zone.msn.com/binary...n.cab31267.cab
O22 - SharedTaskScheduler: Browseui preloader - {438755C2-A8BA-11D1-B96B-00A0C90312E1} - C:\WINDOWS\System32\browseui.dll
O22 - SharedTaskScheduler: Component Categories cache daemon - {8C7461EF-2B13-11d2-BE35-3078302C2030} - C:\WINDOWS\System32\browseui.dll
O23 - Service: AVG7 Alert Manager Server (Avg7Alrt) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
O23 - Service: AVG7 Update Service (Avg7UpdSvc) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: LightScribeService Direct Disc Labeling Service (LightScribeService) - Hewlett-Packard Company - C:\Program Files\Common Files\LightScribe\LSSrvc.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\system32\HPZipm12.exe

--
End of file - 9518 bytes

Good-oh. Get rid of the panda button by fixing this entry with HT. Log is otherwise clean...
O9 - Extra button: Panda ActiveScan - {653D93AF-C741-4e5e-8C1B-59BA43F93E16} - http://www.pandasoftware.com/activescan (file missing)

Cheers.

Thanks once again. Running like a dream. Your help is much appreciated. Keep up the good work!
Davo8

Gerbil,
I forgot to add, your advice re. avg was spot on. I manually deleted about half of the files in the C:\Programs \ Grisoft (avg)folder and it then allowed me to do a clean repair and has installed and is up and running. A safe mode scan using re installed nav has shown a clean bill of health as well. Cheers