I ran all of the scans that were on your Start Here page and the AVG Anti-Virus seems to be running but reports that it cannot open a connection to update itself.
Attached is the Hijack This Report.
Logfile of HijackThis v1.99.1
Scan saved at 5:33:36 PM, on 10/3/2006
Platform: Windows XP SP1 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP1 (6.00.2800.1106)
Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\csrss.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\System32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\LEXBCES.EXE
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
C:\PROGRA~1\Grisoft\AVG7\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVG7\avgupsvc.exe
C:\WINDOWS\avgagent.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\MDM.EXE
C:\Program Files\Analog Devices\SoundMAX\SMAgent.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Analog Devices\SoundMAX\SMTray.exe
C:\WINDOWS\System32\sistray.EXE
C:\PROGRA~1\Grisoft\AVG7\avgcc.exe
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\avgas.exe
C:\WINDOWS\System32\ctfmon.exe
C:\WINDOWS\System32\WISPTIS.EXE
C:\Program Files\Internet Explorer\iexplore.exe
C:\Documents and Settings\Frank.LCSM\Desktop\LCSM\HijackThis\HijackThis.exe
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.mytelus.com/home_page.html
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 6.0\Reader\ActiveX\AcroIEHelper.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar2.dll
O3 - Toolbar: &Radio - {8E718888-423F-11D2-876E-00A0C9082467} - C:\WINDOWS\System32\msdxm.ocx
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar2.dll
O4 - HKLM\..\Run: [Smapp] C:\Program Files\Analog Devices\SoundMAX\SMTray.exe
O4 - HKLM\..\Run: [SiS Tray] C:\WINDOWS\System32\sistray.EXE
O4 - HKLM\..\Run: [SiS KHooker] C:\WINDOWS\System32\khooker.exe
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVG7\avgcc.exe /STARTUP
O4 - HKLM\..\Run: [!AVG Anti-Spyware] "C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\avgas.exe" /minimized
O4 - HKLM\..\Run: [dmcbq.exe] C:\WINDOWS\System32\dmcbq.exe
O4 - HKLM\..\Run: [THGuard] "C:\Program Files\TrojanHunter 4.6\THGuard.exe"
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\System32\ctfmon.exe
O8 - Extra context menu item: &Google Search - res://C:\Program Files\Google\GoogleToolbar1.dll/cmsearch.html
O8 - Extra context menu item: &Translate English Word - res://C:\Program Files\Google\GoogleToolbar1.dll/cmwordtrans.html
O8 - Extra context menu item: Backward Links - res://C:\Program Files\Google\GoogleToolbar1.dll/cmbacklinks.html
O8 - Extra context menu item: Cached Snapshot of Page - res://C:\Program Files\Google\GoogleToolbar1.dll/cmcache.html
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~3\OFFICE11\EXCEL.EXE/3000
O8 - Extra context menu item: Similar Pages - res://C:\Program Files\Google\GoogleToolbar1.dll/cmsimilar.html
O8 - Extra context menu item: Translate Page into English - res://C:\Program Files\Google\GoogleToolbar1.dll/cmtrans.html
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~3\OFFICE11\REFIEBAR.DLL
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: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://update.micros...b?1124484773053
O16 - DPF: {9A9307A0-7DA4-4DAF-B042-5009F29E09E1} (ActiveScan Installer Class) - http://acs.pandasoft...free/asinst.cab
O17 - HKLM\System\CCS\Services\Tcpip\Parameters: Domain = lcsm.local
O17 - HKLM\Software\..\Telephony: DomainName = lcsm.local
O17 - HKLM\System\CCS\Services\Tcpip\..\{057BCAB4-3964-495B-A9BC-5A598A91E520}: NameServer = 85.255.114.10,85.255.112.219
O17 - HKLM\System\CCS\Services\Tcpip\..\{5DFD387A-BB89-4867-A403-A6A6DA799426}: NameServer = 85.255.114.10,85.255.112.219
O17 - HKLM\System\CS1\Services\Tcpip\Parameters: Domain = lcsm.local
O17 - HKLM\System\CS1\Services\Tcpip\Parameters: NameServer = 85.255.114.10 85.255.112.219
O17 - HKLM\System\CS1\Services\Tcpip\..\{057BCAB4-3964-495B-A9BC-5A598A91E520}: NameServer = 85.255.114.10,85.255.112.219
O17 - HKLM\System\CS2\Services\Tcpip\Parameters: Domain = lcsm.local
O17 - HKLM\System\CS2\Services\Tcpip\Parameters: NameServer = 85.255.114.10 85.255.112.219
O17 - HKLM\System\CS2\Services\Tcpip\..\{057BCAB4-3964-495B-A9BC-5A598A91E520}: NameServer = 85.255.114.10,85.255.112.219
O17 - HKLM\System\CCS\Services\Tcpip\Parameters: NameServer = 85.255.114.10 85.255.112.219
O20 - Winlogon Notify: PCANotify - C:\WINDOWS\SYSTEM32\PCANotify.dll
O23 - Service: AVG Anti-Spyware Guard - Anti-Malware Development a.s. - C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
O23 - Service: AVG7 Alert Manager Server (Avg7Alrt) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgamsvr.exe
O23 - Service: AVG7 Update Service (Avg7UpdSvc) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgupsvc.exe
O23 - Service: AVG7 Remote Support Service (AvgAgent) (avgagent) - Unknown owner - avgagent.exe (file missing)
O23 - Service: pcAnywhere Host Service (awhost32) - Symantec Corporation - C:\Program Files\Symantec\pcAnywhere\awhost32.exe
O23 - Service: LexBce Server (LexBceS) - Lexmark International, Inc. - C:\WINDOWS\system32\LEXBCES.EXE
O23 - Service: SoundMAX Agent Service (SoundMAX Agent Service (default)) - Analog Devices, Inc. - C:\Program Files\Analog Devices\SoundMAX\SMAgent.exe
Also ****** the Panda Scan reported this **** I could not find any link in the regedit to the listed directories.
Incident Status Location
Virus:Trj/Qhost.gen Renamed C:\WINDOWS\system32\drivers\etc\hosts
Virus:Trj/Qhost.EA Disinfected C:\WINDOWS\system32\drivers\etc\hosts.20061003-145923.backup
Virus:Trj/Qhost.EA Disinfected C:\WINDOWS\system32\drivers\etc\hosts.20061003-145924.backup
**** Please advice ****