Thanks for the help guys......... but I solved it n my own. You see "flsmngr.dll" isn't supposed to be there in the first place.... it was a protocol handler. It featured as an unknown process on the HJT scan log. When I tried to fix it... it said cannot fix.... use Spybot. I have been using spybot for a year now, along with Ad-Ware. However they didn't help.
But I realised, this was something to do with Winsock32, so I used LSPFix (thanx to u guys for informing me of this software) and I removed flsmngr.dll as a protocol manager, and VIOLA!!!! i was back in business.
I think flsmngr.dll is a leftover of an earlier infection of combo.exe (Hijacked Desktop, Warning .....Your PC is in Danger...... that one)
I'll tell u how I removed it...... u might want to take note of this.....
I used AVG 1st... it detected combo.exe as a virus and removed it. However, my desktop didn't change. So I removed combo.exe, scombop.exe, scombo.exe and a lot of random exe files created by this Virus from the run,runonce etc list. I also used HJT.
Still no avail.
Next, since I realised the desktop warning was an HTML file, I clicked on properties>source and found out where the file was located. It was in the Windows>Web directory as desktop.html. I shredded this file. My desktop turned blank, but I still couldn't change the wallpaper.
As I was beginning to learn to live with it VERY reluctantly, I got a brainwave....
I went to the Active Desktop settings and disabled all entries there...... AND FINALLY GOT RID OF IT!!!!!!!
U guys tell me what u think of this......
PS:- Sum1 asked for my WinXP CD...... well u gotta realise that I am at least 3000 miles away from any of u...... I'm in India.