It could be. Call up your internet service provider and see if it's a problem on their side.
Your log is clean. If you disabled System Restore, make sure to enable it now.
To help prevent future spyware installations/infections, please read the Anti-Spyware Tutorial (
http://www.greyknight17.com/spyware.htm#prevent) and use the tools provided.
Are there any problems now? If not, you should be set to go.