I know you don't want to hear this but the only way to absolutley, positively fix the problem is do the following:
Download Firefox
Download spybot search and destroy, Don't be fooled by sould alike names either, it's spybot search and destroy and is free.
Download Thunderbird
Download AVG anti virus, get the key they send you and print it out or buy the personnel version, it's very good for the price.
Copy those files to a USB key or cd rom
Backup your important files, ones that you NEED. Email addresses, contact info, etc.
Export your bookmarks to a text file and edit it manually, delete any that are hidden in there that you have no idea where they came from.
Disconnect the system from the internet, unplug the friggin network cards RJ45 connector.
WIPE THE MACHINE which means reformatting the hard drive, delete the partition and recreate it then reformat it.
Keeping it disconnected from the internet reformat the hard drive and install your OS.
Plug your PC into a hardware firewall/router, SMC7xxxx, netgear, etc.
Install Firefox, thunderbird, avg and spybot
reboot
Connect to the internet and update AVG, spybot search & destroy
At this point it is pretty safe to use Internet Explorer to connect to the microsoft update site ONLY and do the updates. Disable spybot, right click on the icon in the system tray, only during the MS updates then once they are all finished reboot and allow spybot to run from then on.
Import the bookmarks file into firefox by using <file><import><bookmarks.txt> file.
Install all your applications again, Office, project, etc.
From then on use ONLY firefox for a browser. You will have to download adobe, flash and all the other plug in's but firefox will prompt you for them as needed. Use IE only for sites that specifically require IE because the company that develped the web site was stupid and hired developers who can't write html according to the standards and bought into the MS BS line.
Configure Thunderbird as your mail reader and don't use outlook or outlook express ever again.
If you are smart you will at this time plug in an external USB drive or second hard drive, boot with a norton ghost boot floppy and image all that work to the extra drive, then unplug it and remove the power to it. Do that on a regular basis and you can always get your system back to the point you last did an image backup.
This will almost guarantee you a troublefree PC provided you don't go looking for trouble, IE: surfing porn sites and sites that offer 'free' screen savers, free icons, free whatevers or eye candy. Nothing is free and if it is it is almost as sure as god made little green apples it's going to have some kind of negative code in there that you wont know about...
Just my opinon, I make money fixing these kinds of problems so take it for what it's worth.
Just a note, it generally takes the virus boxes and spyware scanners about 8-10 minutes to find an open PC on the internet and infect or download their payload which means while you are downloading the newest AV and spyware the bad stuff is already going in. An open PC I define as a pc that has no current av software or firewall installed. I expect to get real busy in the next week or two cleaning up all those new cheap ass dell and gateways xmas PC's that booted onto the new cable modems we have.