Most of the time this starts happening, AVG reports that mswupdate32.exe in windows/system32 is a trojan, and when I click on heal, delete or whatever, AVG reports operation successful, and asks me to reboot. Thing is, this doesn't seem to help, as everything keeps repeating itself.
When windows aren't acting up, mswupdate32.exe isn't shown in the system32 folder (I've got hidden files and protected system files visible), like it isn't there, and perhaps it really isnt. But when stuff starts crashing, it is right there. I don't know if I keep picking it up from the net, or if it's cloaking itself or hiding in some desolate place in windows that should not be

Anyway, I rebooted the comp after the crash, entered safe mode and lo, mswupdate32.exe is sitting in system32. And I delete it, and restart the comp. And after some time, it appears and causes havoc again.
I've run Adaware, CWShredder, Stinger and Spybot and cleaned up everything they found. I also ran Hijackthis, and here's the log:
Logfile of HijackThis v1.99.1
Scan saved at 14:57:37, on 22.12.2005
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\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\system32\spoolsv.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe
C:\Program Files\Executive Software\Diskeeper\DkService.exe
C:\Program Files\Kerio\Personal Firewall 4\kpf4ss.exe
C:\WINDOWS\System32\nvsvc32.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Kerio\Personal Firewall 4\kpf4gui.exe
C:\Program Files\Kerio\Personal Firewall 4\kpf4gui.exe
C:\WINDOWS\System32\RUNDLL32.EXE
C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe
C:\Program Files\Java\jre1.5.0\bin\jusched.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgemc.exe
C:\Program Files\Winamp\winampa.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\Program Files\Microsoft AntiSpyware\gcasServ.exe
C:\WINDOWS\System32\ctfmon.exe
C:\Program Files\Adobe\Acrobat 5.0\Distillr\AcroTray.exe
C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
C:\Games\Heroes3\Register\Remind32.exe
C:\WINDOWS\System32\devldr32.exe
C:\Program Files\Microsoft AntiSpyware\gcasDtServ.exe
C:\WINDOWS\System32\spool\DRIVERS\W32X86\3\E_SICN03.EXE
C:\Program Files\Mozilla Firefox\firefox.exe
C:\Documents and Settings\Marko\Desktop\hijatus.exe
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.srebrnizmaj.hr/
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: (no name) - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\Spybot - Search & Destroy\SDHelper.dll
O3 - Toolbar: &Radio - {8E718888-423F-11D2-876E-00A0C9082467} - C:\WINDOWS\System32\msdxm.ocx
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\System32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [nwiz] nwiz.exe /install
O4 - HKLM\..\Run: [NvMediaCenter] RUNDLL32.EXE C:\WINDOWS\System32\NvMcTray.dll,NvTaskbarInit
O4 - HKLM\..\Run: [NeroFilterCheck] C:\WINDOWS\system32\NeroCheck.exe
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe /STARTUP
O4 - HKLM\..\Run: [SunJavaUpdateSched] C:\Program Files\Java\jre1.5.0\bin\jusched.exe
O4 - HKLM\..\Run: [iTunesHelper] C:\Program Files\iTunes\iTunesHelper.exe
O4 - HKLM\..\Run: [AVG7_EMC] C:\PROGRA~1\Grisoft\AVGFRE~1\avgemc.exe
O4 - HKLM\..\Run: [WinampAgent] C:\Program Files\Winamp\winampa.exe
O4 - HKLM\..\Run: [gcasServ] "C:\Program Files\Microsoft AntiSpyware\gcasServ.exe"
O4 - HKCU\..\Run: [CTFMON.EXE] C:\WINDOWS\System32\ctfmon.exe
O4 - Startup: 3DO Registration.lnk = C:\Games\Heroes3\Register\Remind32.exe
O4 - Startup: WinMySQLadmin.lnk = C:\mysql\bin\winmysqladmin.exe
O4 - Global Startup: Acrobat Assistant.lnk = C:\Program Files\Adobe\Acrobat 5.0\Distillr\AcroTray.exe
O4 - Global Startup: Adobe Gamma Loader.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: EPSON Status Monitor 3 Environment Check.lnk = C:\WINDOWS\system32\spool\drivers\w32x86\3\E_SRCV03.EXE
O4 - Global Startup: Microsoft Office.lnk = C:\Program Files\Microsoft Office\Office10\OSA.EXE
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\Office10\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0\bin\npjpi150.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0\bin\npjpi150.dll
O9 - Extra button: ICQ Pro - {6224f700-cba3-4071-b251-47cb894244cd} - C:\PROGRA~1\ICQ\ICQ.exe
O9 - Extra 'Tools' menuitem: ICQ - {6224f700-cba3-4071-b251-47cb894244cd} - C:\PROGRA~1\ICQ\ICQ.exe
O12 - Plugin for .spop: C:\Program Files\Internet Explorer\Plugins\NPDocBox.dll
O17 - HKLM\System\CCS\Services\Tcpip\..\{44C5D0FC-F643-44A7-9305-0592D0665372}: NameServer = 213.191.128.8 213.191.128.9
O23 - Service: Adobe LM Service - Adobe Systems - C:\Program Files\Common Files\Adobe Systems Shared\Service\Adobelmsvc.exe
O23 - Service: AVG7 Alert Manager Server (Avg7Alrt) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
O23 - Service: AVG7 Update Service (Avg7UpdSvc) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe
O23 - Service: Diskeeper - Executive Software International, Inc. - C:\Program Files\Executive Software\Diskeeper\DkService.exe
O23 - Service: iPod Service (iPodService) - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Kerio Personal Firewall 4 (KPF4) - Kerio Technologies - C:\Program Files\Kerio\Personal Firewall 4\kpf4ss.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\System32\nvsvc32.exe
Any ideas on what's causing mswupdate32.exe to reappear?