Spyware Alert real or a hoax?

I recently started getting this popup in the lower right corner of my browser and one that pops up center of the browser. I took a screen shot of the center one if you need it. I ran Hijack this and this is the results:

Logfile of HijackThis v1.99.1
Scan saved at 6:24:42 PM, on 8/8/2006
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)
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:\WINDOWS\Explorer.EXE
C:\WINDOWS\SM1BG.EXE
C:\Program Files\Common Files\Logitech\QCDriver\LVCOMS.EXE
C:\WINDOWS\System32\spool\drivers\w32x86\3\hpztsb04.exe
C:\Program Files\Adaptec\Easy CD Creator 5\DirectCD\DirectCD.exe
C:\Program Files\Common Files\Real\Update_OB\realsched.exe
C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\MusicMatch\MusicMatch Jukebox\mmtask.exe
C:\Program Files\Yahoo!\Messenger\ypager.exe
C:\WINDOWS\system32\devldr32.exe
C:\Program Files\Logitech\SetPoint\kem.exe
C:\Program Files\Logitech\SetPoint\KHALMNPR.EXE
C:\Program Files\Common Files\Microsoft Shared\Works Shared\wkcalrem.exe
C:\Program Files\SEC\Natural Color\NaturalColorLoad.exe
C:\Program Files\Sony Corporation\Picture Package\Picture Package Menu\SonyTray.exe
C:\Program Files\Sony Corporation\Picture Package\Picture Package Applications\Residence.exe
C:\Program Files\PrintKey2000\Printkey2000.exe
C:\WINDOWS\System32\cisvc.exe
C:\WINDOWS\System32\tcpsvcs.exe
C:\WINDOWS\System32\snmp.exe
C:\WINDOWS\System32\svchost.exe
C:\PROGRA~1\VCOM\SYSTEM~1\MXTask.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\PROGRA~1\VCOM\SYSTEM~1\mxtask.exe
C:\WINDOWS\system32\wscntfy.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\smartdrv.exe
C:\WINDOWS\system32\officescan.exe
C:\WINDOWS\system32\cidaemon.exe
C:\Program Files\VCOM\SystemSuite\SSuite.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Microsoft Money\System\urlmap.exe
C:\Documents and Settings\Owner.BADTOY.008\Desktop\tt\HijackThis.exe
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Bar = about:blank
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://www.searchwww.com/
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = about:blank
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,SearchAssistant = http://www.searchwww.com/bar.html
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Local Page =
O2 - BHO: (no name) - {00000000-59D4-4008-9058-080011001200} - (no file)
O2 - BHO: (no name) - {00000000-C1EC-0345-6EC2-4D0300000000} - (no file)
O2 - BHO: (no name) - {00000000-F09C-02B4-6EC2-AD0300000000} - (no file)
O2 - BHO: (no name) - {3ceff6cd-6f08-4e4d-bccd-ff7415288c3b} - (no file)
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O2 - BHO: (no name) - {77701e16-9bfe-4b63-a5b4-7bd156758a37} - (no file)
O2 - BHO: (no name) - {7b55bb05-0b4d-44fd-81a6-b136188f5deb} - (no file)
O2 - BHO: (no name) - {8333c319-0669-4893-a418-f56d9249fca6} - (no file)
O2 - BHO: IEWatchObj Class - {9527D42F-D666-11D3-B8DD-00600838CD5F} - C:\WINDOWS\System32\IETie.dll
O2 - BHO: (no name) - {9c691a33-7dda-4c2f-be4c-c176083f35cf} - (no file)
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar2.dll
O2 - BHO: office_pnl.office_panel - {B53455DB-5527-4041-AC41-F86E6947AA47} - C:\WINDOWS\system32\office_pnl.dll
O2 - BHO: (no name) - {E3215F20-3212-11D6-9F8B-00D0B743919D} - C:\WINDOWS\System32\StopzillaBHO.dll
O2 - BHO: (no name) - {e52dedbb-d168-4bdb-b229-c48160800e81} - (no file)
O2 - BHO: (no name) - {FDD3B846-8D59-4ffb-8758-209B6AD74ACC} - C:\Program Files\Microsoft Money\System\mnyviewer.dll
O2 - BHO: (no name) - {ffd2825e-0785-40c5-9a41-518f53a8261f} - (no file)
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn0\yt.dll
O3 - Toolbar: Proxy - {98A7C97A-4FFF-4f6e-A313-D21BC759DD99} - C:\WINDOWS\tproxy.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar2.dll
O4 - HKLM\..\Run: [WorksFUD] C:\Program Files\Microsoft Works\wkfud.exe
O4 - HKLM\..\Run: [SM1BG] C:\WINDOWS\SM1BG.EXE
O4 - HKLM\..\Run: [MoneyStartUp10.0] "C:\Program Files\Microsoft Money\System\Activation.exe"
O4 - HKLM\..\Run: [Microsoft Works Portfolio] C:\Program Files\Microsoft Works\WksSb.exe /AllUsers
O4 - HKLM\..\Run: [LVCOMS] C:\Program Files\Common Files\Logitech\QCDriver\LVCOMS.EXE
O4 - HKLM\..\Run: [HPDJ Taskbar Utility] C:\WINDOWS\System32\spool\drivers\w32x86\3\hpztsb04.exe
O4 - HKLM\..\Run: [EM_EXEC] C:\PROGRA~1\Logitech\MOUSEW~1\SYSTEM\EM_EXEC.EXE
O4 - HKLM\..\Run: [AdaptecDirectCD] "C:\Program Files\Adaptec\Easy CD Creator 5\DirectCD\DirectCD.exe"
O4 - HKLM\..\Run: [Fix-It AV] C:\PROGRA~1\VCOM\SYSTEM~1\MemCheck.exe
O4 - HKLM\..\Run: [TkBellExe] "C:\Program Files\Common Files\Real\Update_OB\realsched.exe" -osboot
O4 - HKLM\..\Run: [SunJavaUpdateSched] C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe
O4 - HKLM\..\Run: [ConSrvMgr] csmrsnv.exe
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [mmtask] "C:\Program Files\MusicMatch\MusicMatch Jukebox\mmtask.exe"
O4 - HKLM\..\Run: [Adware.Srv32] C:\WINDOWS\system32\runsrv32.exe
O4 - HKLM\..\Run: [Transponder] C:\WINDOWS\system32\susp.exe
O4 - HKLM\..\RunServicesOnce: [washindex] C:\Program Files\Cookie Washer\washidx.exe "Owner"
O4 - HKCU\..\Run: [Yahoo! Pager] "C:\Program Files\Yahoo!\Messenger\ypager.exe" -quiet
O4 - HKCU\..\Run: [ConSrvMgr] csmrsnv.exe
O4 - Global Startup: Adobe Gamma Loader.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Global Startup: Camio Viewer 2000.lnk = C:\Program Files\Sierra Imaging\Image Expert 2000\IXApplet.exe
O4 - Global Startup: Logitech SetPoint.lnk = ?
O4 - Global Startup: Microsoft Office.lnk = C:\Program Files\Microsoft Office\Office10\OSA.EXE
O4 - Global Startup: Microsoft Works Calendar Reminders.lnk = ?
O4 - Global Startup: NaturalColorLoad.lnk = ?
O4 - Global Startup: Picture Package Menu.lnk = ?
O4 - Global Startup: Picture Package VCD Maker.lnk = ?
O4 - Global Startup: Printkey2000.lnk = C:\Program Files\PrintKey2000\Printkey2000.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: Google AdSense Preview Tool - http://pagead2.googlesyndication.com/pagead/preview/en/preview.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
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: StarLuck.com - {2B6AA6C9-1646-46e7-8D23-D54274F2F2F2} - C:\Program Files\Starluck Casino\bin\IEExtension_SL.dll
O9 - Extra 'Tools' menuitem: StarLuck.com - {2B6AA6C9-1646-46e7-8D23-D54274F2F2F2} - C:\Program Files\Starluck Casino\bin\IEExtension_SL.dll
O9 - Extra button: UltimateBet - {94148DB5-B42D-4915-95DA-2CBB4F7095BF} - C:\Program Files\UltimateBet\UltimateBet.exe
O9 - Extra 'Tools' menuitem: UltimateBet - {94148DB5-B42D-4915-95DA-2CBB4F7095BF} - C:\Program Files\UltimateBet\UltimateBet.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: (no name) - {CD67F990-D8E9-11d2-98FE-00C0F0318AFE} - (no file)
O9 - Extra button: MoneySide - {E023F504-0C5A-4750-A1E7-A9046DEA8A21} - C:\Program Files\Microsoft Money\System\mnyviewer.dll
O9 - Extra button: McAfee Visual Trace - {9885224C-1217-4c5f-83C2-00002E6CEF2B} - C:\PROGRA~1\VISUAL~1\NTXtoolbar.htm (HKCU)
O16 - DPF: {30528230-99f7-4bb4-88d8-fa1d4f56a2ab} (YInstStarter Class) - C:\Program Files\Yahoo!\Common\yinsthelper.dll
O16 - DPF: {6E5A37BF-FD42-463A-877C-4EB7002E68AE} (Trend Micro ActiveX Scan Agent 6.5) - http://housecall65.trendmicro.com/housecall/applet/html/native/x86/win32/activex/hcImpl.cab
O16 - DPF: {B38870E4-7ECB-40DA-8C6A-595F0A5519FF} (MsnMessengerSetupDownloadControl Class) - http://messenger.msn.com/download/MsnMessengerSetupDownloader.cab
O18 - Protocol: msnim - {828030A1-22C1-4009-854F-8E305202313F} - "C:\PROGRA~1\MSNMES~1\msgrapp.dll" (file missing)
O20 - Winlogon Notify: WgaLogon - C:\WINDOWS\SYSTEM32\WgaLogon.dll
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: IMAPI CD-Burning COM Service (ImapiService) - Roxio Inc. - C:\WINDOWS\System32\ImapiRox.exe
O23 - Service: iPodService - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: SystemSuite Task Manager - Avanquest Publishing USA, Inc. - C:\PROGRA~1\VCOM\SYSTEM~1\MXTask.exe

Here is a copy of my SmitFraudFix log file:

SmitFraudFix v2.81
Scan done at 21:40:33.48, Tue 08/08/2006
Run from C:\Documents and Settings\Owner.BADTOY.008\Desktop\SmitfraudFix
OS: Microsoft Windows XP [Version 5.1.2600] - Windows_NT
Fix ran in normal mode
»»»»»»»»»»»»»»»»»»»»»»»» C:\

»»»»»»»»»»»»»»»»»»»»»»»» C:\WINDOWS
C:\WINDOWS\alexaie.dll FOUND !
C:\WINDOWS\alxie328.dll FOUND !
C:\WINDOWS\alxtb1.dll FOUND !
C:\WINDOWS\about_spyware_bg.gif FOUND !
C:\WINDOWS\about_spyware_bottom.gif FOUND !
C:\WINDOWS\as.gif FOUND !
C:\WINDOWS\as_header.gif FOUND !
C:\WINDOWS\bg.gif FOUND !
C:\WINDOWS\bg_bg.gif FOUND !
C:\WINDOWS\big_red_x.gif FOUND !
C:\WINDOWS\box_1.gif FOUND !
C:\WINDOWS\box_2.gif FOUND !
C:\WINDOWS\box_3.gif FOUND !
C:\WINDOWS\BTGrab.dll FOUND !
C:\WINDOWS\button_buynow.gif FOUND !
C:\WINDOWS\button_freescan.gif FOUND !
C:\WINDOWS\buy_now.gif FOUND !
C:\WINDOWS\click_for_free_scan.gif FOUND !
C:\WINDOWS\close_ico.gif FOUND !
C:\WINDOWS\close-bar.gif FOUND !
C:\WINDOWS\dlmax.dll FOUND !
C:\WINDOWS\download.gif FOUND !
C:\WINDOWS\download_box.gif FOUND !
C:\WINDOWS\download_product.gif FOUND !
C:\WINDOWS\features.gif FOUND !
C:\WINDOWS\footer_back.gif FOUND !
C:\WINDOWS\footer_back.jpg FOUND !
C:\WINDOWS\free_scan_red_btn.gif FOUND !
C:\WINDOWS\header_1.gif FOUND !
C:\WINDOWS\header_2.gif FOUND !
C:\WINDOWS\header_3.gif FOUND !
C:\WINDOWS\header_4.gif FOUND !
C:\WINDOWS\icon_warning_big.gif FOUND !
C:\WINDOWS\infected.gif FOUND !
C:\WINDOWS\infected_top_bg.gif FOUND !
C:\WINDOWS\logo.gif FOUND !
C:\WINDOWS\main_back.gif FOUND !
C:\WINDOWS\navibar_bg.gif FOUND !
C:\WINDOWS\navibar_corner_left.gif FOUND !
C:\WINDOWS\navibar_corner_right.gif FOUND !
C:\WINDOWS\product_box.gif FOUND !
C:\WINDOWS\Pynix.dll FOUND !
C:\WINDOWS\red_warning_ico.gif FOUND !
C:\WINDOWS\remove_spyware_header.gif FOUND !
C:\WINDOWS\rf.gif FOUND !
C:\WINDOWS\rf_header.gif FOUND !
C:\WINDOWS\safe_and_trusted.gif FOUND !
C:\WINDOWS\scan_btn.gif FOUND !
C:\WINDOWS\security-center-bg.gif FOUND !
C:\WINDOWS\security-center-logo.gif FOUND !
C:\WINDOWS\security_center_caption.gif FOUND !
C:\WINDOWS\sep_hor.gif FOUND !
C:\WINDOWS\sep_vert.gif FOUND !
C:\WINDOWS\spacer.gif FOUND !
C:\WINDOWS\spacer.gif' FOUND !
C:\WINDOWS\spyware_detected.gif FOUND !
C:\WINDOWS\spyware-detected.gif FOUND !
C:\WINDOWS\star.gif FOUND !
C:\WINDOWS\star_gray.gif FOUND !
C:\WINDOWS\star_gray_small.gif FOUND !
C:\WINDOWS\star_small.gif FOUND !
C:\WINDOWS\susp.exe FOUND !
C:\WINDOWS\System32fab.exe FOUND !
C:\WINDOWS\ts.gif FOUND !
C:\WINDOWS\ts_header.gif FOUND !
C:\WINDOWS\v.gif FOUND !
C:\WINDOWS\warning_icon.gif FOUND !
C:\WINDOWS\warning-bar-ico.gif FOUND !
C:\WINDOWS\win_logo.gif FOUND !
C:\WINDOWS\x.gif FOUND !
C:\WINDOWS\yellow_warning_ico.gif FOUND !
C:\WINDOWS\ZServ.dll FOUND !
»»»»»»»»»»»»»»»»»»»»»»»» C:\WINDOWS\system

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

»»»»»»»»»»»»»»»»»»»»»»»» C:\WINDOWS\system32
C:\WINDOWS\system32\a.exe FOUND !
C:\WINDOWS\system32\alxres.dll FOUND !
C:\WINDOWS\system32\bridge.dll FOUND !
C:\WINDOWS\system32\dailytoolbar.dll FOUND !
C:\WINDOWS\system32\jao.dll FOUND !
C:\WINDOWS\system32\mshtml32.tdb FOUND !
C:\WINDOWS\system32\office_pnl.dll FOUND !
C:\WINDOWS\system32\officescan.exe FOUND !
C:\WINDOWS\system32\questmod.dll FOUND !
C:\WINDOWS\system32\runsrv32.dll FOUND !
C:\WINDOWS\system32\runsrv32.exe FOUND !
C:\WINDOWS\system32\smaexp32.dll FOUND !
C:\WINDOWS\system32\tcpservice2.exe FOUND !
C:\WINDOWS\system32\txfdb32.dll FOUND !
C:\WINDOWS\system32\udpmod.dll FOUND !
C:\WINDOWS\system32\users32.exe FOUND !
C:\WINDOWS\system32\winblsrv.dll FOUND !
C:\WINDOWS\system32\wstart.dll FOUND !
»»»»»»»»»»»»»»»»»»»»»»»» C:\Documents and Settings\Owner.BADTOY.008\Application Data

»»»»»»»»»»»»»»»»»»»»»»»» Start Menu

»»»»»»»»»»»»»»»»»»»»»»»» C:\DOCUME~1\OWNERB~1.008\FAVORI~1

»»»»»»»»»»»»»»»»»»»»»»»» Desktop

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

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

»»»»»»»»»»»»»»»»»»»»»»»» End