Possible Spyware issue, Cannot connect to Internet, error messages pop up

Please help!!

When I start my computer, my original desktop background shows up for few seconds but goes back to white "Active Desktop Recovery" background desktop.

After some time I get 3 popup window saying the following: They are a) "sopidkc.exe has encountered a problem and needs to close. We are sorry for the inconvenience." b) "afisicx.exe has encountered a problem and needs to close. We are sorry for the inconvenience." c) "mabidwe.exe has encountered a problem and needs to close. We are sorry for the inconvenience."

The messages remain there but the desktop background changes to a black color with the following message"WARNING Dangerous Spyware. Many viruses were found on your computer such as : Trojan horse, PassCapture, etc. Your personal information an fall into in the "third hands". Please check up the computer with a special software. Thank"

Hijacklog is attached below:

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 1:43:50 PM, on 2/28/2009
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16791)
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\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\system32\spoolsv.exe
C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\MDM.EXE
C:\Documents and Settings\Administrator\Application Data\U3\0000174F8860A57A\LaunchPad.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
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelper.dll
O2 - BHO: ShoppingReport - {100EB1FD-D03E-47FD-81F3-EE91287F9465} - C:\Program Files\ShoppingReport\Bin\2.5.0\ShoppingReport.dll
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll
O4 - HKLM\..\Run: [Apoint] C:\Program Files\DellTPad\Apoint.exe
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files\Adobe\Reader 8.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [IgfxTray] C:\WINDOWS\system32\igfxtray.exe
O4 - HKLM\..\Run: [HotKeysCmds] C:\WINDOWS\system32\hkcmd.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: [AVG8_TRAY] C:\PROGRA~1\AVG\AVG8\avgtray.exe
O4 - HKLM\..\Run: [Framework Windows] frmwrk32.exe
O4 - HKLM\..\Run: [Explorer] C:\WINDOWS\system32\msrstart.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKLM\..\Policies\Explorer\Run: [xccinit] C:\WINDOWS\system32\inf\rundll33.exe C:\WINDOWS\xccdf16_090131a.dll xccd16
O4 - HKUS\S-1-5-18\..\Run: [WeatherDPA] "C:\Program Files\Zango\bin\10.3.75.0\Weather.exe" -auto (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [WeatherDPA] "C:\Program Files\Zango\bin\10.3.75.0\Weather.exe" -auto (User 'Default user')
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.DLL
O9 - Extra button: ShopperReports - Compare product prices - {C5428486-50A0-4a02-9D20-520B59A9F9B2} - C:\Program Files\ShoppingReport\Bin\2.5.0\ShoppingReport.dll
O9 - Extra button: ShopperReports - Compare travel rates - {C5428486-50A0-4a02-9D20-520B59A9F9B3} - C:\Program Files\ShoppingReport\Bin\2.5.0\ShoppingReport.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
O10 - Unknown file in Winsock LSP: c:\windows\temp\ntdll64.dll
O10 - Unknown file in Winsock LSP: c:\windows\temp\ntdll64.dll
O14 - IERESET.INF: START_PAGE_URL=http://mmi.milgard.com
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - https://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG8\avgpp.dll
O20 - Winlogon Notify: avgrsstarter - C:\WINDOWS\SYSTEM32\avgrsstx.dll
O23 - Service: afisicx  Service (afisicx) - Unknown owner - C:\WINDOWS\system32\afisicx.exe
O23 - Service: AVG Free8 E-mail Scanner (avg8emc) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgemc.exe
O23 - Service: AVG Free8 WatchDog (avg8wd) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
O23 - Service: mabidwe  Service (mabidwe) - Unknown owner - C:\WINDOWS\system32\mabidwe.exe
O23 - Service: sopidkc  Service (sopidkc) - Unknown owner - C:\WINDOWS\system32\sopidkc.exe

--
End of file - 4676 bytes

Thanks a lot.