I've just spent the last week tearing my hair out with a terrible rogue dialler, browser hijack and virus. And, against my will, sending out thousands of emails along the lines of No More Teeny Man in Locker Room! and Discount Ci%lis.
Finally I solved it all in one morning, by getting Spybot into the computer via a pen drive. It immediately detected several registry entries redirecting sites such as this one to 127.0.0.1 (as well as finding the diallers and a Firewall Bypass script.
I wonder why AVG, Lavasoft and Comodo didn't detect these, even when booting in safe mode?