Ugh, again... Malware help.. HJT log included

My husband was on the computer, and he got a ton of windows notifications about internet explorer. EVerytime he'd hit okay another 3 would come up. Then AVG pop up with utorrent infection.

I ran AVG and sent all files to the virus vault. Now we get a pop-up notification that you can't click off without hitting okay that says

"Dialog" at the top.. then it reads " To confirm you are legit owner of this PC enter code below" then it has 7 captcha letters and box for you to enter the code then okay.

Heres the HJT log.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 7:28:08 AM, on 6/9/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\csrss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Real\RealPlayer\RealPlay.exe
C:\Program Files\Dell\Media Experience\PCMService.exe
C:\WINDOWS\system32\Rundll32.exe
C:\Program Files\CyberLink\PowerDVD\DVDLauncher.exe
C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
C:\WINDOWS\system32\hkcmd.exe
C:\WINDOWS\system32\igfxpers.exe
C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
C:\Program Files\Analog Devices\Core\smax4pnp.exe
C:\Program Files\HP\HP Software Update\HPWuSchd2.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\WINDOWS\system32\WDBtnMgr.exe
C:\PROGRA~1\AVG\AVG8\avgtray.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\WINDOWS\system32\CTsvcCDA.EXE
C:\WINDOWS\system32\DVDRAMSV.exe
C:\Program Files\Common Files\LightScribe\LSSrvc.exe
C:\Program Files\Digital Line Detect\DLG.exe
C:\Program Files\CyberLink\Shared Files\RichVideo.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Viewpoint\Common\ViewpointService.exe
C:\WINDOWS\system32\MsPMSPSv.exe
C:\WINDOWS\SYSTEM32\RAMASST.exe
C:\Program Files\Canon\CAL\CALMAIN.exe
C:\Program Files\HP\Digital Imaging\bin\hpqimzone.exe
C:\PROGRA~1\AVG\AVG8\avgrsx.exe
C:\PROGRA~1\AVG\AVG8\avgemc.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\System32\alg.exe
C:\Program Files\Spybot - Search & Destroy\SpybotSD.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
C:\Program Files\Viewpoint\Viewpoint Manager\ViewMgr.exe
C:\Program Files\internet explorer\iexplore.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe
C:\WINDOWS\system32\wbem\wmiprvse.exe

R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: Spybot-S&D IE Protection - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: AVG Security Toolbar - {A057A204-BACC-4D26-9990-79A187E2698E} - C:\PROGRA~1\AVG\AVG8\AVGTOO~1.DLL
O3 - Toolbar: McAfee VirusScan - {BA52B914-B692-46c4-B683-905236F6F655} - c:\progra~1\mcafee.com\vso\mcvsshl.dll
O3 - Toolbar: AVG Security Toolbar - {A057A204-BACC-4D26-9990-79A187E2698E} - C:\PROGRA~1\AVG\AVG8\AVGTOO~1.DLL
O4 - HKLM\..\Run: [VSOCheckTask] "c:\PROGRA~1\mcafee.com\vso\mcmnhdlr.exe" /checktask
O4 - HKLM\..\Run: [VirusScan Online] "c:\PROGRA~1\mcafee.com\vso\mcvsshld.exe"
O4 - HKLM\..\Run: [UpdReg] C:\WINDOWS\UpdReg.EXE
O4 - HKLM\..\Run: [UpdateManager] "C:\Program Files\Common Files\Sonic\Update Manager\sgtray.exe" /r
O4 - HKLM\..\Run: [RealTray] C:\Program Files\Real\RealPlayer\RealPlay.exe SYSTEMBOOTHIDEPLAYER
O4 - HKLM\..\Run: [PCMService] "C:\Program Files\Dell\Media Experience\PCMService.exe"
O4 - HKLM\..\Run: [P17Helper] Rundll32 P17.dll,P17Helper
O4 - HKLM\..\Run: [MediaFace Integration] C:\Program Files\Fellowes\MediaFACE 4.0\SetHook.exe
O4 - HKLM\..\Run: [LogitechVideoRepair] C:\Program Files\Logitech\Video\ISStart.exe
O4 - HKLM\..\Run: [DVDLauncher] "C:\Program Files\CyberLink\PowerDVD\DVDLauncher.exe"
O4 - HKLM\..\Run: [DeadAIM] rundll32.exe "C:\Program Files\AIM\\DeadAIM.ocm",ExportedCheckODLs
O4 - HKLM\..\Run: [CTSysVol] C:\Program Files\Creative\Sound Blaster Live! 24-bit\Surround Mixer\CTSysVol.exe /r
O4 - HKLM\..\Run: [igfxtray] C:\WINDOWS\system32\igfxtray.exe
O4 - HKLM\..\Run: [igfxhkcmd] C:\WINDOWS\system32\hkcmd.exe
O4 - HKLM\..\Run: [igfxpers] C:\WINDOWS\system32\igfxpers.exe
O4 - HKLM\..\Run: [Adobe Photo Downloader] "C:\Program Files\Adobe\Photoshop Elements 4.0\apdproxy.exe"
O4 - HKLM\..\Run: [SoundMAXPnP] C:\Program Files\Analog Devices\Core\smax4pnp.exe
O4 - HKLM\..\Run: [HP Software Update] C:\Program Files\HP\HP Software Update\HPWuSchd2.exe
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [WD Button Manager] WDBtnMgr.exe
O4 - HKLM\..\Run: [ISUSPM] "C:\Program Files\Common Files\InstallShield\UpdateService\ISUSPM.exe" -scheduler
O4 - HKLM\..\Run: [AVG8_TRAY] C:\PROGRA~1\AVG\AVG8\avgtray.exe
O4 - HKCU\..\Run: [updateMgr] "C:\Program Files\Adobe\Acrobat 7.0\Reader\AdobeUpdateManager.exe" AcRdB7_0_8 -reboot 1
O4 - HKCU\..\Run: [Microsoft Windows Installer] C:\Documents and Settings\Family\Application Data\Microsoft\dtsc\16136.exe
O4 - HKUS\S-1-5-18\..\Run: [MySpaceIM] C:\Program Files\MySpace\IM\MySpaceIM.exe (User 'SYSTEM')
O4 - HKUS\S-1-5-18\..\Run: [DWQueuedReporting] "C:\PROGRA~1\COMMON~1\MICROS~1\DW\dwtrig20.exe" -t (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [MySpaceIM] C:\Program Files\MySpace\IM\MySpaceIM.exe (User 'Default user')
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: Digital Line Detect.lnk = ?
O4 - Global Startup: HP Digital Imaging Monitor.lnk = C:\Program Files\HP\Digital Imaging\bin\hpqtra08.exe
O4 - Global Startup: HP Photosmart Premier Fast Start.lnk = C:\Program Files\HP\Digital Imaging\bin\hpqthb08.exe
O4 - Global Startup: RAMASST.lnk = C:\WINDOWS\SYSTEM32\RAMASST.exe
O8 - Extra context menu item: &AIM Search - res://C:\Program Files\AIM Toolbar\AIMBar.dll/aimsearch.htm
O9 - Extra button: AIM - {AC9E2541-2814-11d5-BC6D-00B0D0A1DE45} - C:\Program Files\AIM\aim.exe
O9 - Extra button: (no name) - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O9 - Extra 'Tools' menuitem: Spybot - Search & Destroy Configuration - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O16 - DPF: {01113300-3E00-11D2-8470-0060089874ED} (Support.com Configuration Class) - http://www.activation.rr.com/install/download/tgctlcm.cab
O16 - DPF: {0EB0E74A-2A76-4AB3-A7FB-9BD8C29F7F75} (CKAVWebScan Object) - http://www.kaspersky.com/kos/eng/partner/default/kavwebscan_unicode.cab
O16 - DPF: {17492023-C23A-453E-A040-C7C580BBF700} (Windows Genuine Advantage Validation Tool) - http://go.microsoft.com/fwlink/?linkid=39204
O16 - DPF: {30528230-99f7-4bb4-88d8-fa1d4f56a2ab} (YInstStarter Class) - C:\Program Files\Yahoo!\Common\yinsthelper.dll
O16 - DPF: {406B5949-7190-4245-91A9-30A17DE16AD0} -
O16 - DPF: {48DD0448-9209-4F81-9F6D-D83562940134} -
O16 - DPF: {4A3CF76B-EC7A-405D-A67D-8DC6B52AB35B} -
O16 - DPF: {4F1E5B1A-2A80-42CA-8532-2D05CB959537} -
O16 - DPF: {5D86DDB5-BDF9-441B-9E9E-D4730F4EE499} (BDSCANONLINE Control) - http://download.bitdefender.com/resources/scan8/oscan8.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://update.microsoft.com/windowsupdate/v6/V5Controls/en/x86/client/wuweb_site.cab?1152572145015
O16 - DPF: {6E32070A-766D-4EE6-879C-DC1FA91D2FC3} (MUWebControl Class) - http://update.microsoft.com/microsoftupdate/v6/V5Controls/en/x86/client/muweb_site.cab?1136899554234
O16 - DPF: {9600F64D-755F-11D4-A47F-0001023E6D5A} (Shutterfly Picture Upload Plugin) - http://web1.shutterfly.com/downloads/Uploader.cab
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG8\avgpp.dll
O20 - AppInit_DLLs: avgrsstx.dll
O23 - Service: Apple Mobile Device - Apple, Inc. - C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
O23 - Service: AVG8 E-mail Scanner (avg8emc) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgemc.exe
O23 - Service: AVG8 WatchDog (avg8wd) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
O23 - Service: Canon Camera Access Library 8 (CCALib8) - Canon Inc. - C:\Program Files\Canon\CAL\CALMAIN.exe
O23 - Service: Creative Service for CDROM Access - Creative Technology Ltd - C:\WINDOWS\system32\CTsvcCDA.EXE
O23 - Service: DVD-RAM_Service - Matsushita Electric Industrial Co., Ltd. - C:\WINDOWS\system32\DVDRAMSV.exe
O23 - Service: HP Port Resolver - Hewlett-Packard Company - C:\WINDOWS\system32\spool\drivers\w32x86\3\HPBPRO.EXE
O23 - Service: HP Status Server - Hewlett-Packard Company - C:\WINDOWS\system32\spool\drivers\w32x86\3\HPBOID.EXE
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\1050\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: LightScribeService Direct Disc Labeling Service (LightScribeService) - Hewlett-Packard Company - C:\Program Files\Common Files\LightScribe\LSSrvc.exe
O23 - Service: McAfee SecurityCenter Update Manager (mcupdmgr.exe) - Unknown owner - C:\PROGRA~1\McAfee.com\Agent\mcupdmgr.exe (file missing)
O23 - Service: McAfee.com VirusScan Online Realtime Engine (MCVSRte) - Unknown owner - c:\PROGRA~1\mcafee.com\vso\mcvsrte.exe (file missing)
O23 - Service: MSCSPTISRV - Sony Corporation - C:\Program Files\Common Files\Sony Shared\AVLib\MSCSPTISRV.exe
O23 - Service: Intel NCS NetService (NetSvc) - Intel(R) Corporation - C:\Program Files\Intel\PROSetWired\NCS\Sync\NetSvc.exe
O23 - Service: PACSPTISVR - Sony Corporation - C:\Program Files\Common Files\Sony Shared\AVLib\PACSPTISVR.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\system32\HPZipm12.exe
O23 - Service: Cyberlink RichVideo Service(CRVS) (RichVideo) - Unknown owner - C:\Program Files\CyberLink\Shared Files\RichVideo.exe
O23 - Service: Sony SPTI Service (SPTISRV) - Sony Corporation - C:\Program Files\Common Files\Sony Shared\AVLib\SPTISRV.exe
O23 - Service: Viewpoint Manager Service - Viewpoint Corporation - C:\Program Files\Viewpoint\Common\ViewpointService.exe

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End of file - 14418 bytes

And now I cannot open Internet Explorer... I double click on it and it flashes across the screen and then closes.