Yes thay do like to hide

The log looks great. To clear the rest of the items panda picked up just do this and we are done
1. Click Start > Control Panel.
2. Double-click the Java icon (coffee cup) in the control panel. It will say "Java Plug-in" under the icon - please find the update button or tab in that Java control panel. Update your Java, and reboot.
After reboot, go back into the Control Panel and double-click the Java icon.
3. Under Temporary Internet Files, click the Delete Files button.
There are three options on this window to clear the cache - leave ALL 3 checked.
1. Downloaded Applets
2. Downloaded Applications
3. Other Files
4. Click OK on Delete Temporary Files window.
Note: This deletes ALL the Downloaded Applications and Applets from the CACHE.
5. Click OK to leave the Java Control Panel.
Congratulationsyour system is clean
The following is a list of tools and utilities that I like to suggest to people. This list is full of great tools and utilities to help you understand how you got infected and how to keep from getting infected again.
- Spybot Search & Destroy - Uber powerful tool which can search and annhilate nasties that make it onto your system. Now with an Immunize section that will help prevent future infections.
- AdAware - Another very powerful tool which searches and kills nasties that infect your system. AdAware and Spybot Search & Destroy compliment each other very well.
- SpywareBlaster - Great prevention tool to keep nasties from installing on your system.
- SpywareGuard - Works as a Spyware "Shield" to protect your computer from getting malware in the first place.
- IE-SpyAd - puts over 5000 sites in your restricted zone so you'll be protected when you visit innocent-looking sites that aren't actually innocent at all.
- CleanUP! - Cleans temporary files from IE and Windows, empties the recycle bin and more. Great tool to help speed up your computer and knock out those nasties that like to reside in the temp folders.
- Windows Updates - It is very important to make sure that both Internet Explorer and Windows are kept current with the latest critical security patches from Microsoft. To do this just start Internet Explorer and select Tools > Windows Update, and follow the online instructions from there.
- Google Toolbar - Free google toolbar that allows you to use the powerful Google search engine from the bar, but also blocks pop up windows.
- Trillian or Miranda-IM - These are Malware free Instant Messenger programs which allow you to connect to multiple IM services in one program! (AOL, Yahoo, ICQ, IRC, MSN)
To find out more information about how you got infected in the first place and some great guidelines to follow to prevent future infections you can read
this article by Tony Klein