I see no evidence of an AntiVirus program on your system. This must be resolved. Here are a few very good free Antivirus products which are available:
Select one of these, or another of your choice. Download, install, update definitions, and run a full system scan.
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You don't seem to have a firewall program installed. Using a firewall will allow you to give/deny access for applications that want to go online. Select one of these, or another of your choice:
.
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If you have your Windows XP CD, follow instructions
Here for installing Windows Recovery Console.
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If you do not have your XP CD follow instructions below:
Go to Microsoft's website =>
http://support.microsoft.com/kb/310994
Select the download that's appropriate for your Operating System
Download the file & save it as its originally named, next to ComboFix.exe.
Now close all open windows and programs, then drag the setup package onto ComboFix.exe and drop it. Follow the prompts to start ComboFix and when prompted, agree to the End-User License Agreement to install the Microsoft Recovery Console. When complete, a log named CF_RC.txt will open. Please post the contents of that log.
Please do not reboot your machine until we have reviewed the log.
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Logs Required
Antivirus scan log
CF_RC.txt