Windows XP Task Manager grayed out

I have a Windows XP Home edition laptop and of late it has been responding slowly. The computer has become extremely sluggish. The Task Manager is grayed out. Commands using the run command seem to execute instantly, the windows flash by & I am not able to see the results. I only hear a sound through the speakers which is typically heard with an error. Also all DOS commands that I execute in the DOS command window (which is obtained by executing command.com in the Run window) returns with a CR LF (carriage return / Line feed) combination without any output. I have tried all possible DOS commands like dir, help, ipconfig etc.. and all of them behave the same. Even if I were to type a unix command like pwd, it responds the same. Doesn't give an error message stating that the program is not found.

After browing this forum, I found that many folks had downloaded HJT and posted its log to facilitate with the diagnosis. The same is enclosed and appreciate any possible help or assistance.

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Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 3:29:08 PM, on 10/1/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16705)
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\spoolsv.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\Explorer.exe
C:\Program Files\Common Files\LightScribe\LSSrvc.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\wscntfy.exe
C:\WINDOWS\system32\SSVICHOSST.exe
C:\Program Files\ATI Technologies\ATI Control Panel\atiptaxx.exe
C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe
C:\Program Files\hpq\HP Wireless Assistant\HP Wireless Assistant.exe
C:\Program Files\Synaptics\SynTP\SynTPLpr.exe
C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
C:\Program Files\Hp\HP Software Update\HPWuSchd2.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\HPQ\Quick Launch Buttons\EabServr.exe
C:\Program Files\Google\Google Talk\googletalk.exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\system32\SSVICHOSST.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\HPQ\SHARED\HPQWMI.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.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
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
F2 - REG:system.ini: Shell=Explorer.exe SSVICHOSST.exe
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 6.0\Reader\ActiveX\AcroIEHelper.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar5.dll
O2 - BHO: Google Toolbar Notifier BHO - {AF69DE43-7D58-4638-B6FA-CE66B5AD205D} - C:\Program Files\Google\GoogleToolbarNotifier\3.0.1225.9868\swg.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar5.dll
O4 - HKLM\..\Run: [ATIPTA] C:\Program Files\ATI Technologies\ATI Control Panel\atiptaxx.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe
O4 - HKLM\..\Run: [hpWirelessAssistant] C:\Program Files\hpq\HP Wireless Assistant\HP Wireless Assistant.exe
O4 - HKLM\..\Run: [SynTPLpr] C:\Program Files\Synaptics\SynTP\SynTPLpr.exe
O4 - HKLM\..\Run: [SynTPEnh] C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
O4 - HKLM\..\Run: [HP Software Update] C:\Program Files\Hp\HP Software Update\HPWuSchd2.exe
O4 - HKLM\..\Run: [iTunesHelper] C:\Program Files\iTunes\iTunesHelper.exe
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [eabconfg.cpl] C:\Program Files\HPQ\Quick Launch Buttons\EabServr.exe /Start
O4 - HKLM\..\Run: [Cpqset] C:\Program Files\HPQ\Default Settings\cpqset.exe
O4 - HKLM\..\Run: [LSBWatcher] c:\hp\drivers\hplsbwatcher\lsburnwatcher.exe
O4 - HKLM\..\Run: [googletalk] C:\Program Files\Google\Google Talk\googletalk.exe /autostart
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe
O4 - HKCU\..\Run: [Yahoo Messengger] C:\WINDOWS\system32\SSVICHOSST.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKUS\S-1-5-18\..\Run: [Yahoo Messengger] C:\WINDOWS\system32\SSVICHOSST.exe (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [Yahoo Messengger] C:\WINDOWS\system32\SSVICHOSST.exe (User 'Default user')
O7 - HKCU\Software\Microsoft\Windows\CurrentVersion\Policies\System, DisableRegedit=1
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~4\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~4\OFFICE11\REFIEBAR.DLL
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
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
O14 - IERESET.INF: START_PAGE_URL=http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iehome&locale=EN_US&c=Q305&bd=presario&pf=laptop
O17 - HKLM\System\CCS\Services\Tcpip\..\{745719E1-D4E5-4169-98F9-A3D2F5E2E681}: NameServer = 203.94.227.70,203.94.243.70
O23 - Service: Ati HotKey Poller - ATI Technologies Inc. - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: Google Updater Service (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: HP WMI Interface (hpqwmi) - Hewlett-Packard Development Company, L.P. - C:\Program Files\HPQ\SHARED\HPQWMI.exe
O23 - Service: iPod Service (iPodService) - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: LightScribeService Direct Disc Labeling Service (LightScribeService) - Unknown owner - C:\Program Files\Common Files\LightScribe\LSSrvc.exe
O24 - Desktop Component 0: (no name) - http://wm2.vsnl.net/imx/comp_attach.gif

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End of file - 6418 bytes
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Thanks & regards

RockingRaj