Services.exe prevents any action [Closed]

I posted this in the Windows XP forum first because I was working with someone at Atribune.org, but Broni sent me here. So, here goes:
I was having problems with my iolo System Mechanic using too much memory and killing my CPU performance, so I contacted them about it. They suggested I go into Safe Mode and delete the iolo folder in my Program Files folder and delete the program from my registry. Unfortunately, after I did this I got a message that said the "Remote Procedure Call service terminated unexpectedly" and the computer shut down. When I tried to start it up again, there is a file called "services.exe" that takes up 100% of my cpu performance and I cannot do anything. When I try to access the internet, I get three separate error messages:

CNMNSUT.exe - Application Error. The instruction at "0x10007d50" referenced memory at "0x10007d50". The memory could not be "read".

svchost.exe - Application Error. The instruction at "0x10007d50" referenced memory at "0x10007d50". The memory could not be "read".

sgtray.exe - Application Error. The instruction at "0x00ed7d50" referenced memory at "0x00ed7d50". The memory could not be "read".

From some research, I believe the first one relates to my Canon printer (not sure why I'm getting the error though) Not sure about the other two. I sent an email to iolo to ask how to fix this, since they caused it, but they have been less than helpful. I was also working with a member of the Atribune.org group on it (had previously been working with him on virus removal, which is what started this whole thing) and he sent me here when none of his suggestions worked. Here is what we tried already:

Ran System File Checker, then opened Recovery Console and ran "chkdsk /r "; no effect.

Tried your Windows Repair method at: http://www.geekstogo...ws-XP-t138.html
When it started back up I left it running on the installation screen and it said "The setup will be complete in approximately 39 minutes"...for over 4 hours. I restarted it to see if maybe there was a hiccup and then went to bed and woke up to a blue death screen. That's when Rorschach112 at Atribune sent me here.

I cannot run any of the recommended malware fixes from your "before you post" board. First, I've run most of them because Atribune requested to run the same things. I thought I was close to being rid of viruses/malware when iolo told me to delete their antivirus program from my registry; that's when services.exe entered the picture. While working with Atribune, I attempted to run an OTL quick scan again (I have about 30 seconds when I start up to work before services.exe takes over) and it ran for over 9 hours without completing, which led me to believe it will not finish.

Any ideas?