Update.exe? Is it a spyware? (and a HJTlog)

Code:

Logfile of Trend Micro HijackThis v2.0.0 (BETA)
Scan saved at 5:08:07 PM, on 4/9/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
Boot mode: Normal

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:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Creative\Shared Files\CTAudSvc.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\ESET\ESET Smart Security\egui.exe
C:\WINDOWS\system32\CTHELPER.EXE
C:\WINDOWS\system32\CTXFIHLP.EXE
C:\windows\system\Update.exe
C:\WINDOWS\SYSTEM32\CTXFISPI.EXE
C:\WINDOWS\system32\ctfmon.exe
C:\windows\system\Update.exe
C:\Program Files\Diskeeper Corporation\Diskeeper\DkService.exe
C:\Program Files\ESET\ESET Smart Security\ekrn.exe
C:\WINDOWS\system32\PnkBstrA.exe
C:\WINDOWS\system32\svchost.exe
c:\WINDOWS\system32\ZuneBusEnum.exe
C:\Program Files\Mozilla Firefox 3 Beta 5\firefox.exe
C:\Documents and Settings\Courtland Hui\Desktop\WinSpy17\WinSpy.exe
C:\Documents and Settings\Courtland Hui\Desktop\HiJackThis_v2.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
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
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
O2 - BHO: FDMIECookiesBHO Class - {CC59E0F9-7E43-44FA-9FAA-8377850BF205} - C:\Program Files\Free Download Manager\iefdm2.dll
O4 - HKLM\..\Run: [egui] "C:\Program Files\ESET\ESET Smart Security\egui.exe" /hide /waitservice
O4 - HKLM\..\Run: [CTHelper] CTHELPER.EXE
O4 - HKLM\..\Run: [CTxfiHlp] CTXFIHLP.EXE
O4 - HKLM\..\Run: [MSConfig] C:\WINDOWS\system32\msconfig.exe /auto
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKUS\S-1-5-19\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-20\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'NETWORK SERVICE')
O4 - HKUS\S-1-5-18\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'Default user')
O8 - Extra context menu item: Download all with Free Download Manager - file://C:\Program Files\Free Download Manager\dlall.htm
O8 - Extra context menu item: Download selected with Free Download Manager - file://C:\Program Files\Free Download Manager\dlselected.htm
O8 - Extra context menu item: Download video with Free Download Manager - file://C:\Program Files\Free Download Manager\dlfvideo.htm
O8 - Extra context menu item: Download with Free Download Manager - file://C:\Program Files\Free Download Manager\dllink.htm
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)
O22 - SharedTaskScheduler: Browseui preloader - {438755C2-A8BA-11D1-B96B-00A0C90312E1} - C:\WINDOWS\system32\browseui.dll
O22 - SharedTaskScheduler: Component Categories cache daemon - {8C7461EF-2B13-11d2-BE35-3078302C2030} - C:\WINDOWS\system32\browseui.dll
O23 - Service: Ati HotKey Poller - ATI Technologies Inc. - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: Creative Audio Service (CTAudSvcService) - Creative Technology Ltd - C:\Program Files\Creative\Shared Files\CTAudSvc.exe
O23 - Service: Diskeeper - Diskeeper Corporation - C:\Program Files\Diskeeper Corporation\Diskeeper\DkService.exe
O23 - Service: Eset HTTP Server (EhttpSrv) - ESET - C:\Program Files\ESET\ESET Smart Security\EHttpSrv.exe
O23 - Service: Eset Service (ekrn) - ESET - C:\Program Files\ESET\ESET Smart Security\ekrn.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\1050\Intel 32\IDriverT.exe
O23 - Service: PnkBstrA - Unknown owner - C:\WINDOWS\system32\PnkBstrA.exe
O23 - Service: Roxio UPnP Renderer 9 - Sonic Solutions - C:\Program Files\Roxio\Digital Home 9\RoxioUPnPRenderer9.exe
O23 - Service: Roxio Upnp Server 9 - Sonic Solutions - C:\Program Files\Roxio\Digital Home 9\RoxioUpnpService9.exe
O23 - Service: LiveShare P2P Server 9 (RoxLiveShare9) - Sonic Solutions - C:\Program Files\Common Files\Roxio Shared\9.0\SharedCOM\RoxLiveShare9.exe
O23 - Service: RoxMediaDB9 - Sonic Solutions - C:\Program Files\Common Files\Roxio Shared\9.0\SharedCOM\RoxMediaDB9.exe
O23 - Service: Roxio Hard Drive Watcher 9 (RoxWatch9) - Sonic Solutions - C:\Program Files\Common Files\Roxio Shared\9.0\SharedCOM\RoxWatch9.exe

--
End of file - 5277 bytes

There's this thing that pops up at startup that says

but i havn't installed SoftwarePassport or Armadillo. I used WinSpy++ to check where this came from, and it reports that its from the program in C:\windows\system\Update.exe. Very suspicious.

 

bump!