Ok, now for the fun part...
We're probably not going to get all of the nasties on the first run, but let's start with this:
1) Have HijackThis fix the following entries:
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = 127.0.0.1:8080
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = https://
F3 - REG:win.ini: run=C:\WINDOWS\inetdata\services.exe
O2 - BHO: (no name) - {2A29FA17-1BA9-6654-A58E-47C6F864C7B3} - C:\WINDOWS\System32\atkshaeg.dll (file missing)
O2 - BHO: (no name) - {5321E378-FFAD-4999-8C62-03CA8155F0B3} - (no file)
O2 - BHO: (no name) - {B8DADE78-4022-48BF-BE4F-521F4DE6452D} - C:\WINDOWS\System32\lnmg.dll (file missing)
O2 - BHO: Cls - {CF021F40-3E14-23A5-CBA2-716D61788264} - C:\WINDOWS\System32\max8264.dll
O4 - HKLM\..\Run: [xp_system] C:\WINDOWS\inetdata\services.exe
O4 - HKLM\..\Run: [Microsoft Internet Acceleration Utility] iau.exe
O4 - HKLM\..\Run: [Internet Connection Wizard] stisvsq.exe
O4 - HKLM\..\Run: [Games Acceleration] svshost.exe
O4 - HKLM\..\Run: [Internet Mail and News] msqdevl.exe
O4 - HKLM\..\Run: [Microsoft Management Console] lssas.exe
O4 - HKLM\..\Run: [Multimedia extensions] mservice.exe
O4 - HKCU\..\Run: [Ooru] C:\Documents and Settings\Andrew Russon\Application Data\thha.exe
O4 - HKCU\..\Run: [Wbihgqvo] C:\WINDOWS\System32\?hkdsk.exe
O4 - HKCU\..\Run: [Microsoft Internet Acceleration Utility] iau.exe
O4 - HKCU\..\Run: [Internet Connection Wizard] stisvsq.exe
O4 - HKCU\..\Run: [Games Acceleration] svshost.exe
O4 - HKCU\..\Run: [Internet Mail and News] msqdevl.exe
O4 - HKCU\..\Run: [Microsoft Management Console] lssas.exe
O4 - HKCU\..\Run: [Multimedia extensions] mservice.exe
O4 - HKCU\..\Run: [xp_system] C:\WINDOWS\inetdata\services.exe
O15 - Trusted IP range: 206.161.125.149
O15 - Trusted IP range: (HKLM)
O16 - DPF: {11111111-1111-1111-1111-111111113457} - file://c:\ied_s7m.cab
O16 - DPF: …