For the internet connection issue, see if it has the same issue if you use a network cable. Otherwise, try reinstalling the wireless drivers to see if it helps. You can try asking in the networking board to see if they have any ideas on what's wrong.
For the recovery console, if you want to install it, follow the instructions here.
Good job. Your log is clean.
To help prevent future spyware infections, read the Anti-Spyware Tutorial and use the tools provided.
Are there any problems now? If none, go to Start->Run, copy/paste in combofix /u and hit OK to remove it. You should be set to go.