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Hi there, here is the log updates :

HJT:

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 23:20:17, on 16/08/2009
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v8.00 (8.00.6001.18702)
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:\Program Files\Intel\Wireless\Bin\EvtEng.exe
C:\Program Files\Intel\Wireless\Bin\S24EvMon.exe
C:\Program Files\Alwil Software\Avast4\aswUpdSv.exe
C:\Program Files\Alwil Software\Avast4\ashServ.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
C:\Program Files\Bonjour\mDNSResponder.exe
C:\Program Files\TOSHIBA\ConfigFree\CFSvcs.exe
C:\WINDOWS\eHome\ehRecvr.exe
C:\WINDOWS\eHome\ehSched.exe
C:\Program Files\Java\jre6\bin\jqs.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
C:\PROGRA~1\COMMON~1\X10\Common\x10nets.exe
C:\Program Files\Alwil Software\Avast4\ashMaiSv.exe
C:\Program Files\Alwil Software\Avast4\ashWebSv.exe
C:\WINDOWS\system32\dllhost.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\ehome\ehtray.exe
C:\WINDOWS\eHome\ehmsas.exe
C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
C:\WINDOWS\system32\rundll32.exe
C:\Program Files\Synaptics\SynTP\Toshiba.exe
C:\Program Files\Toshiba\Windows Utilities\Hotkey.exe
C:\Program Files\TOSHIBA\TOSHIBA Zooming Utility\SmoothView.exe
C:\WINDOWS\System32\DLA\DLACTRLW.EXE
C:\Program Files\Intel\Wireless\bin\ZCfgSvc.exe
C:\Program Files\Intel\Wireless\Bin\ifrmewrk.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
C:\Program Files\Java\jre6\bin\jusched.exe
C:\Program Files\PeerGuardian2\pg2.exe
C:\WINDOWS\system32\ctfmon.exe
C:\PROGRA~1\Intel\Wireless\Bin\Dot1XCfg.exe
C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\system32\wuauclt.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

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
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = *.local
O4 - HKLM\..\Run: [ehTray] C:\WINDOWS\ehome\ehtray.exe
O4 - HKLM\..\Run: [nwiz] nwiz.exe /installquiet
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [High Definition Audio Property Page Shortcut] CHDAudPropShortcut.exe
O4 - HKLM\..\Run: [SynTPEnh] C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
O4 - HKLM\..\Run: [Toshiba Hotkey Utility] "C:\Program Files\Toshiba\Windows Utilities\Hotkey.exe" /lang en
O4 - HKLM\..\Run: [SmoothView] C:\Program Files\TOSHIBA\TOSHIBA Zooming Utility\SmoothView.exe
O4 - HKLM\..\Run: [DLA] C:\WINDOWS\System32\DLA\DLACTRLW.EXE
O4 - HKLM\..\Run: [IntelZeroConfig] "C:\Program Files\Intel\Wireless\bin\ZCfgSvc.exe"
O4 - HKLM\..\Run: [IntelWireless] "C:\Program Files\Intel\Wireless\Bin\ifrmewrk.exe" /tf Intel PROSet/Wireless
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: [avast!] C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre6\bin\jusched.exe"
O4 - HKCU\..\Run: [PeerGuardian] C:\Program Files\PeerGuardian2\pg2.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKUS\S-1-5-18\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User 'Default user')
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
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: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.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: {5ED80217-570B-4DA9-BF44-BE107C0EC166} (Windows Live Safety Center Base Module) - http://cdn.scan.onecare.live.com/resource/download/scanner/wlscbase1140.cab
O23 - Service: Apple Mobile Device - Apple Inc. - C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
O23 - Service: avast! iAVS4 Control Service (aswUpdSv) - ALWIL Software - C:\Program Files\Alwil Software\Avast4\aswUpdSv.exe
O23 - Service: avast! Antivirus - ALWIL Software - C:\Program Files\Alwil Software\Avast4\ashServ.exe
O23 - Service: avast! Mail Scanner - ALWIL Software - C:\Program Files\Alwil Software\Avast4\ashMaiSv.exe
O23 - Service: avast! Web Scanner - ALWIL Software - C:\Program Files\Alwil Software\Avast4\ashWebSv.exe
O23 - Service: Bonjour Service - Apple Inc. - C:\Program Files\Bonjour\mDNSResponder.exe
O23 - Service: ConfigFree Service (CFSvcs) - TOSHIBA CORPORATION - C:\Program Files\TOSHIBA\ConfigFree\CFSvcs.exe
O23 - Service: Intel(R) PROSet/Wireless Event Log (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 Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Java Quick Starter (JavaQuickStarterService) - Sun Microsystems, Inc. - C:\Program Files\Java\jre6\bin\jqs.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: Intel(R) PROSet/Wireless Registry Service (RegSrvc) - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
O23 - Service: Intel(R) PROSet/Wireless Service (S24EventMonitor) - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\S24EvMon.exe
O23 - Service: X10 Device Network Service (x10nets) - X10 - C:\PROGRA~1\COMMON~1\X10\Common\x10nets.exe

--
End of file - 6887 bytes

And MBA-M:

Malwarebytes' Anti-Malware 1.40
Database version: 2616
Windows 5.1.2600 Service Pack 3

16/08/2009 23:16:13
mbam-log-2009-08-16 (23-16-13).txt

Scan type: Full Scan (C:\|)
Objects scanned: 223922
Time elapsed: 1 hour(s), 0 minute(s), 1 second(s)

Memory Processes Infected: 0
Memory Modules Infected: 0
Registry Keys Infected: 0
Registry Values Infected: 0
Registry Data Items Infected: 1
Folders Infected: 0
Files Infected: 0

Memory Processes Infected:
(No malicious items detected)

Memory Modules Infected:
(No malicious items detected)

Registry Keys Infected:
(No malicious items detected)

Registry Values Infected:
(No malicious items detected)

Registry Data Items Infected:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Security Center\UpdatesDisableNotify (Disabled.SecurityCenter) -> Bad: (1) Good: (0) -> Quarantined and deleted successfully.

Folders Infected:
(No malicious items detected)

Files Infected:
(No malicious items detected)

Sorry for the delay in getting back to you with these logs. I am still seeing Avast Trojan warnings in C:\Windows\system32\dllcache\ntfs.sys and the quarantined ones in MBA-M Quarantine and a warning in C:\Systemvolumeinformation\_restore{1BA85EF5-6c2B-4f0d-............}\RP1\A0000171.sys.

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That is your System Restore. Set a new Restore point to clear all that out.
To do this Right click My Computer, choose properties. When that opens click on the System Restore Tab. Place a check mark in Turn Off System Restore, click ok. System Restore will then turn off and the Restore Points removed. Wait a moment and then do the Reverse...remove that check mark and System Restore will turn back on with a new and clean restore point.

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Ok, I have done that now. Is the system clean now do you think ? And is there a possibility that the virus spread to any USB drives that have been plugged into the machine?

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Ok, I have done that now. Is the system clean now do you think ? And is there a possibility that the virus spread to any USB drives that have been plugged into the machine?

Well, yes there is, you never said there were USB drives involved here. You should update MBA-M and scan those and follow the same procedure with those, HJT wouldn't be an option though.

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Ok thanks, I will do. Does the pc look clean now to you from the above logs ? I am no longer getting Avast warning pop ups which is pleasant, to say the least!

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Yes the computer itself looks clean. However, before you do scans of the USB drives you need to disable the AutoPlay feature for USB devices, otherwise you could re-infect the computer if these drives do carry the infection. To do this follow the directions HERE
After you have disabled the Auto Play THEN plug in the drives and scan them with MBA-M and also your AV program.

Votes + Comments
Thanks so much for the help !
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Thanks a lot for all your help JHolland, I did what you said and disabled autoplay, scanned the drives. They turned out to be completely clean and now I will pass this computer back to my friend knowing that its all clean! Thank you so much for all your help, I couldn't have done it without your knowledge and expertise!

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