smss.exe running out of %USERPROFILE%\WINDOWS\system

[redhonker]

Windows Server 2003

Hijackthis is reporting 2 problems:

C:\Documents and Settings\Administrator.WAHLAB\WINDOWS\System32\smss.exe
This entry is not running from the System32 folder, so it is probably nasty.
Possibly nasty! According to our database this process runs normally in c:\windows\system32\! Check if you know this process and arrange a viruscheck where required. This process is not running from the System32 folder as it is supposed to be.

O10 - Broken Internet access because of LSP provider 'c:\documents and settings\administrator.wahlab\windows\system32\mswsock.dll' missing
Check your hard disc drive with Spybot S&D from Kolla.de or LSPFix from Cexx.org. This entry should not be fixed! Your best bet to repair it is to try the LSPFix from Cexx.org.

I've check profile folder. Everyone's folder has a WINDOWS folder with the following files:

nfile.upd
win.ctx
win.ini
system (empty directory).

There is no system32 folder.

Is there anything wrong on my server?

Thanks!