OK - Going alright so far.
here is the SDFIX Report
SDFix: Version 1.89
Run by MUM and DAD on 04/07/2007 at 17:28
Microsoft Windows XP [Version 5.1.2600]
Running From: C:\SDFix
Safe Mode:
Checking Services:
Restoring Windows Registry Values
Restoring Windows Default Hosts File
Rebooting...
Normal Mode:
Checking Files:
Below files will be copied to Backups folder then removed:
C:\WINDOWS\SYSTEM32\TASKKILL.EXE - Deleted
C:\Documents and Settings\All Users\Start Menu\Programs\Startup\svchost.exe - Deleted
Removing Temp Files...
ADS Check:
Checking C:\WINDOWS
C:\WINDOWS
No streams found.
Checking C:\WINDOWS\system32
C:\WINDOWS\system32
No streams found.
Checking C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
No streams found.
Checking C:\WINDOWS\system32\ntoskrnl.exe
C:\WINDOWS\system32\ntoskrnl.exe
No streams found.
Final Check:
Remaining Services:
------------------
Authorized Application Key Export:
[HKEY_LOCAL_MACHINE\system\currentcontrolset\services\sharedaccess\parameters\firewallpolicy\standardprofile\authorizedapplications\list]
"%windir%\\system32\\sessmgr.exe"="%windir%\\system32\\sessmgr.exe:*:enabled

xpsp2res.dll,-22019"
"C:\\Program Files\\Grisoft\\AVG7\\avginet.exe"="C:\\Program Files\\Grisoft\\AVG7\\avginet.exe:*:Enabled:avginet.exe"
"C:\\Program Files\\Grisoft\\AVG7\\avgamsvr.exe"="C:\\Program Files\\Grisoft\\AVG7\\avgamsvr.exe:*:Enabled:avgamsvr.exe"
"C:\\Program Files\\Grisoft\\AVG7\\avgcc.exe"="C:\\Program Files\\Grisoft\\AVG7\\avgcc.exe:*:Enabled:avgcc.exe"
"C:\\Program Files\\Grisoft\\AVG7\\avgemc.exe"="C:\\Program Files\\Grisoft\\AVG7\\avgemc.exe:*:Enabled:avgemc.exe"
"C:\\Program Files\\Yahoo!\\Messenger\\ypager.exe"="C:\\Program Files\\Yahoo!\\Messenger\\ypager.exe:*:Enabled:Yahoo! Messenger"
"C:\\Program Files\\Yahoo!\\Messenger\\YServer.exe"="C:\\Program Files\\Yahoo!\\Messenger\\YServer.exe:*:Enabled:Yahoo! FT Server"
"%windir%\\Network Diagnostic\\xpnetdiag.exe"="%windir%\\Network Diagnostic\\xpnetdiag.exe:*:Enabled

xpsp3res.dll,-20000"
"C:\\Program Files\\Microsoft Office\\Office12\\OUTLOOK.EXE"="C:\\Program Files\\Microsoft Office\\Office12\\OUTLOOK.EXE:*:Enabled:Microsoft Office Outlook"
"C:\\Program Files\\Microsoft Office\\Office12\\GROOVE.EXE"="C:\\Program Files\\Microsoft Office\\Office12\\GROOVE.EXE:*:Enabled:Microsoft Office Groove"
"C:\\Program Files\\Microsoft Office\\Office12\\ONENOTE.EXE"="C:\\Program Files\\Microsoft Office\\Office12\\ONENOTE.EXE:*:Enabled:Microsoft Office OneNote"
"C:\\Program Files\\iTunes\\iTunes.exe"="C:\\Program Files\\iTunes\\iTunes.exe:*:Enabled:iTunes"
"C:\\Program Files\\LimeWire\\LimeWire.exe"="C:\\Program Files\\LimeWire\\LimeWire.exe:*:Enabled:LimeWire"
"C:\\Documents and Settings\\All Users\\Start Menu\\Programs\\Startup\\svchost.exe"="C:\\Documents and Settings\\All Users\\Start Menu\\Programs\\Startup\\svchost.exe:*

isabled:svchost"
"C:\\Program Files\\IncrediMail\\bin\\ImApp.exe"="C:\\Program Files\\IncrediMail\\bin\\ImApp.exe:*:Enabled:IncrediMail"
"C:\\Program Files\\IncrediMail\\bin\\IncMail.exe"="C:\\Program Files\\IncrediMail\\bin\\IncMail.exe:*:Enabled:IncrediMail"
"C:\\Program Files\\IncrediMail\\bin\\ImpCnt.exe"="C:\\Program Files\\IncrediMail\\bin\\ImpCnt.exe:*:Enabled:IncrediMail"
"C:\\Documents and Settings\\MUM and DAD\\Local Settings\\Temporary Internet Files\\Content.IE5\\0F7JDYT1\\magentic_install[1].exe"="C:\\Documents and Settings\\MUM and DAD\\Local Settings\\Temporary Internet Files\\Content.IE5\\0F7JDYT1\\magentic_install[1].exe:*:Enabled:IncrediMail Installer"
"C:\\Program Files\\Magentic\\bin\\MgImp.exe"="C:\\Program Files\\Magentic\\bin\\MgImp.exe:*:Enabled:Magentic"
"C:\\Program Files\\Magentic\\bin\\Magentic.exe"="C:\\Program Files\\Magentic\\bin\\Magentic.exe:*:Enabled:Magentic"
"C:\\Program Files\\Magentic\\bin\\MgApp.exe"="C:\\Program Files\\Magentic\\bin\\MgApp.exe:*:Enabled:Magentic"
[HKEY_LOCAL_MACHINE\system\currentcontrolset\services\sharedaccess\parameters\firewallpolicy\domainprofile\authorizedapplications\list]
"%windir%\\system32\\sessmgr.exe"="%windir%\\system32\\sessmgr.exe:*:enabled

xpsp2res.dll,-22019"
"%windir%\\Network Diagnostic\\xpnetdiag.exe"="%windir%\\Network Diagnostic\\xpnetdiag.exe:*:Enabled

xpsp3res.dll,-20000"
Remaining Files:
---------------
Backups Folder: - C:\SDFix\backups\backups.zip
Files with Hidden Attributes:
C:\Documents and Settings\All Users\DRM\Cache\Indiv01.tmp
Finished
..................and the new Hijack Log................
Logfile of HijackThis v1.99.1
Scan saved at 17:40:38, on 04/07/2007
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16473)
Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Windows Defender\MsMpEng.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
C:\PROGRA~1\Grisoft\AVG7\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVG7\avgupsvc.exe
C:\PROGRA~1\Grisoft\AVG7\avgemc.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\mdm.exe
C:\WINDOWS\system32\SearchIndexer.exe
C:\WINDOWS\system32\wuauclt.exe
C:\PROGRA~1\Grisoft\AVG7\avgcc.exe
C:\WINDOWS\SOUNDMAN.EXE
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\PROGRA~1\Yahoo!\browser\ycommon.exe
C:\Program Files\HijackThis\HijackThis.exe
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Bar =
http://uk.red.clientapps.yahoo.com/...b/*http://uk.docs.yahoo.com/info/bt_side.html
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page =
http://uk.red.clientapps.yahoo.com/customize/btyahoo/defaults/sp/*http://uk.search.yahoo.com/
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page =
http://www.google.co.uk/ig?hl=en
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 Bar =
http://uk.red.clientapps.yahoo.com/...b/*http://uk.docs.yahoo.com/info/bt_side.html
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page =
http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page =
http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKCU\Software\Microsoft\Internet Explorer\SearchURL,(Default) =
http://uk.red.clientapps.yahoo.com/customize/btyahoo/defaults/su/*http://uk.search.yahoo.com/
R1 - HKCU\Software\Microsoft\Internet Connection Wizard,ShellNext =
http://www.savastore.com/
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Window Title = Microsoft Internet Explorer provided by Watford Electronics
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = 127.0.0.1
R3 - URLSearchHook: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: Yahoo! Toolbar Helper - {02478D38-C3F9-4EFB-9B51-7695ECA05670} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelper.dll
O2 - BHO: (no name) - {53707962-6F74-2D53-2644-206D7942484F} - C:\Program Files\Spybot - Search & Destroy\SDHelper.dll
O2 - BHO: Yahoo! IE Services Button - {5BAB4B5B-68BC-4B02-94D6-2FC0DE4A7897} - C:\PROGRA~1\Yahoo!\Common\yiesrvc.dll
O2 - BHO: Groove GFS Browser Helper - {72853161-30C5-4D22-B7F9-0BBC1D38A37E} - C:\PROGRA~1\MICROS~3\Office12\GRA8E1~1.DLL
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.6.0_01\bin\ssv.dll
O2 - BHO: SidebarAutoLaunch Class - {F2AA9440-6328-4933-B7C9-A6CCDF9CBF6D} - C:\Program Files\Yahoo!\browser\YSidebarIEBHO.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVG7\avgcc.exe /STARTUP
O4 - HKLM\..\Run: [SoundMan] SOUNDMAN.EXE
O4 - HKLM\..\Run: [PrevxOne] "C:\Program Files\Prevx2\PXConsole.exe"
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Control Panel present
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~3\Office12\EXCEL.EXE/3000
O9 - Extra button: Send to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~3\Office12\ONBttnIE.dll
O9 - Extra 'Tools' menuitem: S&end to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~3\Office12\ONBttnIE.dll
O9 - Extra button: BT Yahoo! Services - {5BAB4B5B-68BC-4B02-94D6-2FC0DE4A7897} - C:\PROGRA~1\Yahoo!\Common\yiesrvc.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~3\Office12\REFIEBAR.DLL
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra button: SavaStore - {4305B49F-01D9-46DD-9084-305D7B94008A} -
http://www.savastore.com (file missing) (HKCU)
O11 - Options group: [INTERNATIONAL] International*
O14 - IERESET.INF: START_PAGE_URL=http://www.savastore.com
O16 - DPF: Yahoo! Cribbage -
http://download2.games.yahoo.com/games/clients/y/it1_x.cab
O16 - DPF: {30528230-99f7-4bb4-88d8-fa1d4f56a2ab} (Installation Support) - C:\Program Files\Yahoo!\Common\Yinsthelper2007261.dll
O16 - DPF: {5ED80217-570B-4DA9-BF44-BE107C0EC166} (Windows Live Safety Center Base Module) -
http://cdn.scan.onecare.live.com/resource/download/scanner/wlscbase8300.cab
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) -
http://v5.windowsupdate.microsoft.c...ls/en/x86/client/wuweb_site.cab?1098489774421
O16 - DPF: {6E32070A-766D-4EE6-879C-DC1FA91D2FC3} (MUWebControl Class) -
http://www.update.microsoft.com/mic...ls/en/x86/client/muweb_site.cab?1183150351453
O16 - DPF: {E8F628B5-259A-4734-97EE-BA914D7BE941} (Driver Agent ActiveX Control) -
http://driveragent.com/files/driveragent.cab
O18 - Protocol: grooveLocalGWS - {88FED34C-F0CA-4636-A375-3CB6248B04CD} - C:\PROGRA~1\MICROS~3\Office12\GR99D3~1.DLL
O18 - Protocol: ms-help - {314111C7-A502-11D2-BBCA-00C04F8EC294} - C:\Program Files\Common Files\Microsoft Shared\Help\hxds.dll
O18 - Filter hijack: text/xml - {807563E5-5146-11D5-A672-00B0D022E945} - C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSOXMLMF.DLL
O20 - Winlogon Notify: WgaLogon - C:\WINDOWS\SYSTEM32\WgaLogon.dll
O20 - Winlogon Notify: WRNotifier - WRLogonNTF.dll (file missing)
O21 - SSODL: WPDShServiceObj - {AAA288BA-9A4C-45B0-95D7-94D524869DB5} - C:\WINDOWS\system32\WPDShServiceObj.dll
O23 - Service: Ad-Aware 2007 Service (aawservice) - Lavasoft AB - C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
O23 - Service: Apple Mobile Device - Apple, Inc. - C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
O23 - Service: Ati HotKey Poller - ATI Technologies Inc. - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: ATI Smart - Unknown owner - C:\WINDOWS\system32\ati2sgag.exe
O23 - Service: AVG7 Alert Manager Server (Avg7Alrt) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgamsvr.exe
O23 - Service: AVG7 Update Service (Avg7UpdSvc) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgupsvc.exe
O23 - Service: AVG E-mail Scanner (AVGEMS) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgemc.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Prevx Agent (PREVXAgent) - Unknown owner - C:\Program Files\Prevx2\PXAgent.exe" -f (file missing)
O23 - Service: YPCService - Yahoo! Inc. - C:\WINDOWS\system32\YPCSER~1.EXE
Now going to do the 2nd part of your instructions.