I just answered my own question with a bit of tinkering- This WILL help other people.
You can fix the start menu by right-clicking on start button and selecting properties. Then go to "Customize" and select the "Advanced" tab. Go through the list and set things how you would like them to appear.
Next, to restore C and D drives to My Computer, download "Tweak UI" from M$. It is free and AMAZING- I've been using it for years and keep it installed on all my xp machines. Google search for XP Powertoys and download it directly from microsoft to make sure you are not getting MORE malware. In Tweak, go to My Computer and check the boxes next to any hidden drives.
New to the forums and having nearly identical problem.
Virus/Trojan/Malware cause 3 of my desktop icons to be deleted and replaced with links to fake websites locally redirected on my computer, disabled access to regedit and display properties, all local hard drives, "All Programs" in the start menu, all shortcuts in right column of the start menu (my computer, network places, etc), and changed all time stamps to display "Virus Alert!" instead of seconds/AM/PM.
Using the information in this thread I was able to fix most issues. However I am still unable to access my C drive and icons are missing from my start menu.
I was unable to fix the lost/deleted desktop shortcuts- I can remember what two of the shortcuts were but I think one will be lost forever (HAH! As I typed that I remembered the last shortcut- OpenArena, an open source first person shooter which I highly reccommend).
How can I fix the start menu issue and missing C drive issue?