Just wanted to start by saying thanks fol all the help ya'll provide. I have spent a little over an hour reading the topics before I posted.

The problem - I have a system tray icon that says "Your computer is infected. Windows has detected spyware infection!......" It just directs me to a bogus website.
I also have no acces to my control panel. I receive a message saying "This operation has been cancelled due to restrictions in effect on this computer. Please contact your system administrator." After a few minutes I receive a Windows Security Alert "Your computer is making unaothorized copies of your Internet files. Run full scan now....."

IE works fine and explorer appears to operate fine.

What I have done - Run AVG scan, run Spybot S&D as well as AdAware. Removed all found entries but still no luck.

Thanks in advance for any help.

Here is my Hijack This log:
Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 9:13:10 AM, on 9/5/2007
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\csrss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\System32\Ati2evxx.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\wdfmgr.exe
C:\Program Files\Common Files\Sony Shared\VAIO Entertainment\VzCdb\VzFw.exe
C:\WINDOWS\System32\alg.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\Explorer.exe
C:\WINDOWS\System32\wbem\wmiprvse.exe
C:\WINDOWS\system32\printer.exe
C:\Program Files\Apoint\Apoint.exe
C:\Program Files\ATI Technologies\ATI Control Panel\atiptaxx.exe
C:\Program Files\Sony\VAIO Power Management\SPMgr.exe
C:\Program Files\Sony\HotKey Utility\HKserv.exe
C:\Program Files\Sony\VAIO Update 2\VAIOUpdt.exe
C:\WINDOWS\System32\ezSP_Px.exe
C:\WINDOWS\System32\spool\DRIVERS\W32X86\3\E_S4I2F1.EXE
C:\Program Files\Sony\HotKey Utility\HKWnd.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe
C:\Program Files\Fisher-Price\FP3 Player\sspnotifier.exe
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\Apoint\Apntex.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
C:\Program Files\Nikon\PictureProject\NkbMonitor.exe
C:\WINDOWS\System32\wbem\wmiapsrv.exe
C:\WINDOWS\System32\wbem\wmiprvse.exe
C:\Hijack This\HiJackThis.exe
C:\Program Files\Symantec\LiveUpdate\AUpdate.exe

R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://www.sony.com/vaiopeople
R1 - HKCU\Software\Microsoft\Internet Connection Wizard,ShellNext = http://www.sony.com/vaiopeople
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = 168.94.74.68:8080
R0 - HKCU\Software\Microsoft\Internet Explorer\Toolbar,LinksFolderName =
F2 - REG:system.ini: Shell=Explorer.exe C:\WINDOWS\system32\printer.exe
N3 - Netscape 7: user_pref("browser.search.defaultengine", "engine://C%3A%5CProgram%20Files%5CNetscape%5CNetscape%5Csearchplugins%5CSBWeb_01.src"); (C:\Documents and Settings\OWNER\Application Data\Mozilla\Profiles\default\8htgspkl.slt\prefs.js)
O2 - BHO: IEHlprObj Class - {ABCDECF0-4B15-11D1-ABED-709549C10000} - C:\WINDOWS\system32\vtr.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: [ATIPTA] C:\Program Files\ATI Technologies\ATI Control Panel\atiptaxx.exe
O4 - HKLM\..\Run: [Mouse Suite 98 Daemon] ICO.EXE
O4 - HKLM\..\Run: [VAIO Recovery] C:\WINDOWS\Sonysys\VAIO Recovery\PartSeal.exe
O4 - HKLM\..\Run: [SonyPowerCfg] C:\Program Files\Sony\VAIO Power Management\SPMgr.exe
O4 - HKLM\..\Run: [HKSERV.EXE] C:\Program Files\Sony\HotKey Utility\HKserv.exe
O4 - HKLM\..\Run: [VAIO Update 2] "C:\Program Files\Sony\VAIO Update 2\VAIOUpdt.exe" /Stationary
O4 - HKLM\..\Run: [ezShieldProtector for Px] C:\WINDOWS\System32\ezSP_Px.exe
O4 - HKLM\..\Run: [EPSON Stylus Photo R300 Series] C:\WINDOWS\System32\spool\DRIVERS\W32X86\3\E_S4I2F1.EXE /P30 "EPSON Stylus Photo R300 Series" /O6 "USB001" /M "Stylus Photo R300"
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe /STARTUP
O4 - HKLM\..\Run: [SSP Notifier] C:\Program Files\Fisher-Price\FP3 Player\sspnotifier.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: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [SpySweeper] "C:\Program Files\Webroot\Spy Sweeper\SpySweeper.exe" /0
O4 - HKCU\..\Run: [SsAAD.exe] C:\PROGRA~1\Sony\SONICS~1\SsAAD.exe
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe
O4 - HKCU\..\Run: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe
O4 - HKCU\..\Run: [SpybotSD TeaTimer] C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
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 - Startup: system.exe
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: autorun.exe
O4 - Global Startup: NkbMonitor.exe.lnk = C:\Program Files\Nikon\PictureProject\NkbMonitor.exe
O4 - Global Startup: QuickBooks Update Agent.lnk = C:\Program Files\Common Files\Intuit\QuickBooks\QBUpdate\qbupdate.exe
O7 - HKLM\Software\Microsoft\Windows\CurrentVersion\Policies\System, DisableRegedit=1
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~3\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\j2re1.4.2_01\bin\npjpi142_01.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\j2re1.4.2_01\bin\npjpi142_01.dll
O9 - Extra button: (no name) - {85d1f590-48f4-11d9-9669-0800200c9a66} - C:\WINDOWS\bdoscandel.exe
O9 - Extra 'Tools' menuitem: Uninstall BitDefender Online Scanner v8 - {85d1f590-48f4-11d9-9669-0800200c9a66} - C:\WINDOWS\bdoscandel.exe
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~3\OFFICE11\REFIEBAR.DLL
O9 - Extra button: (no name) - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O9 - Extra 'Tools' menuitem: Spybot - Search & Destroy Configuration - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.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.sony.com/vaiopeople
O15 - Trusted Zone: http://www.amaena.com
O15 - Trusted Zone: http://locator.cdn.imageservr.com
O15 - Trusted Zone: http://scanner.sysprotect.com
O15 - Trusted Zone: http://*.systemdoctor.com
O15 - Trusted Zone: http://www.winantivirus.com
O15 - Trusted Zone: http://www.winantiviruspro.com
O15 - Trusted Zone: http://download.cdn.winsoftware.com
O15 - Trusted IP range: http://202.67.220.225
O15 - Trusted IP range: http://59.148.220.121
O15 - Trusted IP range: http://62.4.84.53
O15 - Trusted IP range: http://82.98.235.58
O15 - Trusted IP range: http://85.12.25.90
O16 - DPF: {0EB0E74A-2A76-4AB3-A7FB-9BD8C29F7F75} (CKAVWebScan Object) - http://www.kaspersky.com/kos/eng/par...an_unicode.cab
O16 - DPF: {5D86DDB5-BDF9-441B-9E9E-D4730F4EE499} (BDSCANONLINE Control) - http://download.bitdefender.com/reso...an8/oscan8.cab
O16 - DPF: {74C861A1-D548-4916-BC8A-FDE92EDFF62C} - http://mediaplayer.walmart.com/installer/install.cab
O16 - DPF: {B64F4A7C-97C9-11DA-8BDE-F66BAD1E3F3A} - http://download.cdn.winsoftware.com/...reeInstall.cab
O20 - AppInit_DLLs: hadjajr.ini
O20 - Winlogon Notify: atskocm - C:\WINDOWS\atskocm.dll (file missing)
O23 - Service: Ad-Aware 2007 Service (aawservice) - Lavasoft AB - C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
O23 - Service: Ati HotKey Poller - Unknown owner - C:\WINDOWS\System32\Ati2evxx.exe
O23 - Service: Automatic LiveUpdate Scheduler - Symantec Corporation - C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
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: Google Updater Service (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.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 Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: LiveUpdate - Symantec Corporation - C:\PROGRA~1\Symantec\LIVEUP~1\LUCOMS~1.EXE
O23 - Service: MSCSPTISRV - Sony Corporation - C:\Program Files\Common Files\Sony Shared\AVLib\MSCSPTISRV.exe
O23 - Service: PACSPTISVR - Sony Corporation - C:\Program Files\Common Files\Sony Shared\AVLib\PACSPTISVR.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\system32\HPZipm12.exe
O23 - Service: Sony SPTI Service (SPTISRV) - Sony Corporation - C:\Program Files\Common Files\Sony Shared\AVLib\SPTISRV.exe
O23 - Service: VAIO Entertainment Aggregation and Control Service - Sony Corporation - C:\Program Files\Common Files\Sony Shared\VAIO Entertainment\VzRs\VzRs.exe
O23 - Service: VAIO Entertainment File Import Service - Sony Corporation - C:\Program Files\Common Files\Sony Shared\VAIO Entertainment\VzCdb\VzFw.exe
O23 - Service: VAIO Entertainment TV Device Arbitration Service - Sony Corporation - C:\Program Files\Common Files\Sony Shared\VAIO Entertainment\VzCs\VzHardwareResourceManager\VzHardwareResourceManager.exe
O23 - Service: VAIO Entertainment UPnP Client Adapter - Sony Corporation - C:\Program Files\Common Files\Sony Shared\VAIO Entertainment\VCSW\VCSW.exe
O23 - Service: VAIO Media Integrated Server (VAIOMediaPlatform-IntegratedServer-AppServer) - Sony Corporation - C:\Program Files\Sony\vaio media integrated server\VMISrv.exe
O23 - Service: VAIO Media Integrated Server (HTTP) (VAIOMediaPlatform-IntegratedServer-HTTP) - Sony Corporation - C:\Program Files\Sony\vaio media integrated server\Platform\SV_Httpd.exe
O23 - Service: VAIO Media Integrated Server (UPnP) (VAIOMediaPlatform-IntegratedServer-UPnP) - Sony Corporation - C:\Program Files\Sony\vaio media integrated server\Platform\UPnPFramework.exe
O23 - Service: VAIO Media Gateway Server (VAIOMediaPlatform-Mobile-Gateway) - Sony Corporation - C:\Program Files\Sony\vaio media integrated server\Platform\VmGateway.exe
O23 - Service: VAIO Media Video Server (VAIOMediaPlatform-VideoServer-AppServer) - Sony Corporation - C:\Program Files\Sony\vaio media integrated server\Video\GPVSvr.exe
O23 - Service: VAIO Media Video Server (HTTP) (VAIOMediaPlatform-VideoServer-HTTP) - Sony Corporation - C:\Program Files\Sony\vaio media integrated server\Platform\SV_Httpd.exe
O23 - Service: VAIO Media Video Server (UPnP) (VAIOMediaPlatform-VideoServer-UPnP) - Sony Corporation - C:\Program Files\Sony\vaio media integrated server\Platform\UPnPFramework.exe

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