Please download SmitfraudFix from http://siri.geekstogo.com/SmitfraudFix.php
Just Rightclick on the link and Save Target As.. then  Save the file to your desktop and righclick on it and Extract All.
Extract the contents (a folder named SmitfraudFix) to your Desktop.

Shutdown and Restart and Boot into Safe Mode by tapping the F8 key when you see
the PC maker's logo.
Keep tapping until it tells you it is going to Safe Mode or you see the Safe
Mode menu. Select the top option. Log in as your usual login or you won't find
the programs you put on the desktop
and some of the entries we want to remove will not appear in HijackTHis.

Run HijackThis and just do a Scan only. Check any of the following that remain but don't do anything else yet:
 

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = res://C:\WINDOWS\system32\shdocie.dll/defAPI.htm#secX32;
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page =
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page_bak = about:blank
F1 - win.ini: run=fntldr.exe
F2 - REG:system.ini: Shell=Explorer.exe C:\WINDOWS\Nail.exe
O1 - Hosts: 69.31.79.102 auto.search.msn.com
O1 - Hosts: 69.31.79.102 auto.search.msn.com
O2 - BHO: Acrobat IE Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE083} - C:\WINDOWS\system\ctldlg32.dll
O2 - BHO: (no name) - {38D4D5D0-423E-4220-B6F9-30918C2AE4A4} - (no file)
O2 - BHO: MyBHO - {784aa380-13f2-422e-8540-f2280f1dd4f1} - C:\WINDOWS\System32\bhoimpl.dll

O2 - BHO: Log.Full - {B7B0089A-FAF6-43FB-A33D-657E416AE259} - C:\DOCUME~1\ALLUSE~1\APPLIC~1\Log\log.dll
O4 - HKLM\..\Run: [FA Page] C:\WINDOWS\system32\shdocie.exe home
O4 - HKLM\..\Run: [avgnt] "C:\Program Files\AntiVir PersonalEdition Classic\avgnt.exe" /min
O9 - Extra button: (no name) - {CD67F990-D8E9-11d2-98FE-00C0F0318AFE} - (no file)

Rightclick on the clock (in the lower right hand corner) and select Task Manager then Processes then find Explorer.exe and higlight it then End Process.  Ignore the warning.  The desktop will go blank but HJT should still be there.  Go back to HJT and hit the Fix Checked button.  Now shutdown and reboot (Ctrl + Alt + Del and select Shutdown).

Reboot back into Safe Mode as before and

open the SmitfraudFix folder again and double-click
smitfraudfix.cmd

Select option #2 - Clean by typing 2 and press "Enter" to delete infected
files.

You will be prompted : "Registry cleaning - Do you want to clean the
registry ?"; answer "Yes" by typing Y and press "Enter" in order to remove
the Desktop background and clean registry keys associated with the
infection.

The tool will now check if wininet.dll is infected. You may be prompted to
replace the infected file (if found); answer "Yes" by typing Y and press
"Enter".

The tool may need to restart your computer to finish the cleaning process;
if it doesn't, please restart it into Normal Windows.

Make a new HJT log and post it as a reply. 

Ron

Here is what I got afterwards

Logfile of HijackThis v1.99.1
Scan saved at 5:55:18 PM, on 11/05/2006
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)

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:\Program Files\Windows Defender\MsMpEng.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Windows Defender\MSASCui.exe
C:\Program Files\MSN Messenger\msnmsgr.exe
C:\Program Files\AntiVir PersonalEdition Classic\sched.exe
C:\Program Files\AntiVir PersonalEdition Classic\avguard.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\wuauclt.exe
C:\WINDOWS\system32\wscntfy.exe
C:\WINDOWS\system32\wuauclt.exe
C:\Documents and Settings\Owner\Desktop\hijackthis\HijackThis.exe

O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar2.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar2.dll
O4 - HKLM\..\Run: [Windows Defender] "C:\Program Files\Windows Defender\MSASCui.exe" -hide
O4 - HKCU\..\Run: [msnmsgr] "C:\Program Files\MSN Messenger\msnmsgr.exe" /background
O8 - Extra context menu item: &Google Search - res://c:\program files\google\GoogleToolbar2.dll/cmsearch.html
O8 - Extra context menu item: Backward Links - res://c:\program files\google\GoogleToolbar2.dll/cmbacklinks.html
O8 - Extra context menu item: Cached Snapshot of Page - res://c:\program files\google\GoogleToolbar2.dll/cmcache.html
O8 - Extra context menu item: Similar Pages - res://c:\program files\google\GoogleToolbar2.dll/cmsimilar.html
O8 - Extra context menu item: Translate into English - res://c:\program files\google\GoogleToolbar2.dll/cmtrans.html
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
O16 - DPF: {14B87622-7E19-4EA8-93B3-97215F77A6BC} (MessengerStatsClient Class) - http://messenger.zone.msn.com/binary/MessengerStatsPAClient.cab31267.cab
O16 - DPF: {17492023-C23A-453E-A040-C7C580BBF700} (Windows Genuine Advantage Validation Tool) - http://go.microsoft.com/fwlink/?linkid=39204
O16 - DPF: {B8BE5E93-A60C-4D26-A2DC-220313175592} (ZoneIntro Class) - http://messenger.zone.msn.com/binary/ZIntro.cab32846.cab
O16 - DPF: {DA758BB1-5F89-4465-975F-8D7179A4BCF3} (WheelofFortune Object) - http://messenger.zone.msn.com/binary/WoF.cab31267.cab
O17 - HKLM\System\CCS\Services\Tcpip\..\{5A098EA3-903C-4B2E-80BF-0332CDAE6B04}: NameServer = 206.47.244.61 206.47.244.89
O23 - Service: AntiVir PersonalEdition Classic Scheduler (AntiVirScheduler) - Avira GmbH - C:\Program Files\AntiVir PersonalEdition Classic\sched.exe
O23 - Service: AntiVir PersonalEdition Classic Guard (AntiVirService) - AVIRA GmbH - C:\Program Files\AntiVir PersonalEdition Classic\avguard.exe