HELP - Proactive system 2010 - malware

WishI'dReadSooner

Was looking on ancestry.com opened a census & have been plagued by this Proactive system 2010 since (just today).
Keeps telling me I have viruses - AVG says false alert. Also says some IP address is trying to control my system. Have tried to get rid of the application but can't as it says the system is running. It's put 2 icons in the task bar & wants $49.95 to clean my system.
Can anyone please tell me (simply) how to remove this? Using other computer as the infected one you can't use for pop ups.

I can't use system restore as it says program is running.
Ran AVG & Housecall trying to remove it with no luck

Here is the log from Housecall Malware

Logfile of Trend Micro HijackThis v2.0.4
Scan saved at 04:27:44, on 06/05/2010
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v8.00 (8.00.6001.18702)
Boot mode: Normal
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:\Program Files\AVG\AVG9\avgchsvx.exe
C:\Program Files\AVG\AVG9\avgrsx.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\AVG\AVG9\avgcsrvx.exe
C:\Program Files\AVG\AVG9\avgwdsvc.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Bonjour\mDNSResponder.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Java\jre6\bin\jqs.exe
C:\Program Files\Common Files\New Boundary\PrismXL\PRISMXL.SYS
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\slserv.exe
C:\Program Files\AVG\AVG9\avgnsx.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\AVG\AVG9\avgemc.exe
C:\Program Files\AVG\AVG9\avgcsrvx.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Digital Media Reader\shwiconem.exe
C:\Program Files\CyberLink\PowerDVD\PDVDServ.exe
C:\WINDOWS\zHotkey.exe
C:\WINDOWS\system32\igfxtray.exe
C:\WINDOWS\system32\hkcmd.exe
C:\WINDOWS\system32\igfxpers.exe
C:\Program Files\Intel Audio Studio\IntelAudioStudio.exe
C:\PROGRA~1\AVG\AVG9\avgtray.exe
C:\Program Files\Common Files\Java\Java Update\jusched.exe
C:\WINDOWS\system32\smss32.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Securityessentials2010\SE2010.exe
C:\hosting\tomcat\bin\tomcat6.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\WINDOWS\system32\msiexec.exe
C:\Program Files\Trend Micro\HiJackThis\HiJackThis.exe
C:\Program Files\Internet Explorer\IEXPLORE.EXE
C:\Program Files\Internet Explorer\IEXPLORE.EXE
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Bar = http://www.google.co.uk/ie
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.uk.gateway.com/
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = *.local
F2 - REG:system.ini: UserInit=C:\WINDOWS\system32\winlogon32.exe
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: ShoppingReport - {100EB1FD-D03E-47FD-81F3-EE91287F9465} - C:\Program Files\ShoppingReport\Bin\2.6.71\ShoppingReport.dll
O2 - BHO: Skype add-on (mastermind) - {22BF413B-C6D2-4d91-82A9-A0F997BA588C} - C:\Program Files\Skype\Toolbars\Internet Explorer\SkypeIEPlugin.dll
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG9\avgssie.dll
O2 - BHO: AVG Security Toolbar BHO - {A3BC75A2-1F87-4686-AA43-5347D756017C} - C:\Program Files\AVG\AVG9\Toolbar\IEToolbar.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar1.dll
O2 - BHO: Java(tm) Plug-In 2 SSV Helper - {DBC80044-A445-435b-BC74-9C25C1C588A9} - C:\Program Files\Java\jre6\bin\jp2ssv.dll
O2 - BHO: JQSIEStartDetectorImpl - {E7E6F031-17CE-4C07-BC86-EABFE594F69C} - C:\Program Files\Java\jre6\lib\deploy\jqs\ie\jqs_plugin.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar1.dll
O3 - Toolbar: (no name) - {BA52B914-B692-46c4-B683-905236F6F655} - (no file)
O3 - Toolbar: AVG Security Toolbar - {CCC7A320-B3CA-4199-B1A6-9F516DD69829} - C:\Program Files\AVG\AVG9\Toolbar\IEToolbar.dll
O4 - HKLM\..\Run: [NeroFilterCheck] C:\WINDOWS\system32\NeroCheck.exe
O4 - HKLM\..\Run: [SunKistEM] C:\Program Files\Digital Media Reader\shwiconem.exe
O4 - HKLM\..\Run: [RemoteControl] "C:\Program Files\CyberLink\PowerDVD\PDVDServ.exe"
O4 - HKLM\..\Run: [CHotkey] zHotkey.exe
O4 - HKLM\..\Run: [Reminder] %WINDIR%\Creator\Remind_XP.exe
O4 - HKLM\..\Run: [Recguard] %WINDIR%\SMINST\RECGUARD.EXE
O4 - HKLM\..\Run: [IgfxTray] C:\WINDOWS\system32\igfxtray.exe
O4 - HKLM\..\Run: [HotKeysCmds] C:\WINDOWS\system32\hkcmd.exe
O4 - HKLM\..\Run: [Persistence] C:\WINDOWS\system32\igfxpers.exe
O4 - HKLM\..\Run: [SigmatelSysTrayApp] sttray.exe
O4 - HKLM\..\Run: [IntelAudioStudio] "C:\Program Files\Intel Audio Studio\IntelAudioStudio.exe" TRAY
O4 - HKLM\..\Run: [AVG9_TRAY] C:\PROGRA~1\AVG\AVG9\avgtray.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Common Files\Java\Java Update\jusched.exe"
O4 - HKLM\..\Run: [otolpphmt] C:\WINDOWS\System32\otolpphmt.exe
O4 - HKLM\..\Run: [smss32.exe] C:\WINDOWS\system32\smss32.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [otolpphmt] C:\Documents and Settings\Carl Kimble\otolpphmt.exe
O4 - HKCU\..\Run: [smss32.exe] C:\WINDOWS\system32\smss32.exe
O4 - HKCU\..\Run: [Security essentials 2010] C:\Program Files\Securityessentials2010\SE2010.exe
O4 - HKUS\S-1-5-19\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-20\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User 'NETWORK SERVICE')
O4 - HKUS\S-1-5-18\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [CTFMON.EXE] C:\WINDOWS\system32\CTFMON.EXE (User 'Default user')
O4 - Global Startup: HostingClientShortcut.lnk = C:\hosting\client\HostingClient.exe
O4 - Global Startup: Install Pending Files.LNK = C:\Program Files\SIFXINST\SIFXINST.EXE
O9 - Extra button: (no name) - {5067A26B-1337-4436-8AFE-EE169C2DA79F} - C:\Program Files\Skype\Toolbars\Internet Explorer\SkypeIEPlugin.dll
O9 - Extra 'Tools' menuitem: Skype add-on for Internet Explorer - {5067A26B-1337-4436-8AFE-EE169C2DA79F} - C:\Program Files\Skype\Toolbars\Internet Explorer\SkypeIEPlugin.dll
O9 - Extra button: Skype - {77BF5300-1474-4EC7-9980-D32B190E9B07} - C:\Program Files\Skype\Toolbars\Internet Explorer\SkypeIEPlugin.dll
O9 - Extra button: ShopperReports - Compare product prices - {C5428486-50A0-4a02-9D20-520B59A9F9B2} - C:\Program Files\ShoppingReport\Bin\2.6.71\ShoppingReport.dll
O9 - Extra button: ShopperReports - Compare travel rates - {C5428486-50A0-4a02-9D20-520B59A9F9B3} - C:\Program Files\ShoppingReport\Bin\2.6.71\ShoppingReport.dll
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O10 - Unknown file in Winsock LSP: c:\windows\system32\helpers32.dll
O10 - Unknown file in Winsock LSP: c:\windows\system32\helpers32.dll
O15 - Trusted Zone: http://*.buy-security-essentials.com
O15 - Trusted Zone: http://*.download-soft-package.com
O15 - Trusted Zone: http://*.download-software-package.com
O15 - Trusted Zone: http://*.get-key-se10.com
O15 - Trusted Zone: http://*.is-software-download.com
O15 - Trusted Zone: http://*.buy-security-essentials.com (HKLM)
O15 - Trusted Zone: http://*.get-key-se10.com (HKLM)
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - http://fpdownload2.macromedia.com/get/shockwave/cabs/flash/swflash.cab
O16 - DPF: {E2883E8F-472F-4FB0-9522-AC9BF37916A7} - http://platformdl.adobe.com/NOS/getPlusPlus/1.6/gp.cab
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG9\avgpp.dll
O18 - Protocol: skype4com - {FFC8B962-9B40-4DFF-9458-1830C7DD7F5D} - C:\PROGRA~1\COMMON~1\Skype\SKYPE4~1.DLL
O20 - Winlogon Notify: avgrsstarter - avgrsstx.dll (file missing)
O22 - SharedTaskScheduler: Browseui preloader - {438755C2-A8BA-11D1-B96B-00A0C90312E1} - C:\WINDOWS\system32\browseui.dll
O22 - SharedTaskScheduler: Component Categories cache daemon - {8C7461EF-2B13-11d2-BE35-3078302C2030} - C:\WINDOWS\system32\browseui.dll
O23 - Service: Apache2.2 - Apache Software Foundation - C:\hosting\apache\bin\httpd.exe
O23 - Service: AVG Free E-mail Scanner (avg9emc) - AVG Technologies CZ, s.r.o. - C:\Program Files\AVG\AVG9\avgemc.exe
O23 - Service: AVG Free WatchDog (avg9wd) - AVG Technologies CZ, s.r.o. - C:\Program Files\AVG\AVG9\avgwdsvc.exe
O23 - Service: Bonjour Service - Apple Inc. - C:\Program Files\Bonjour\mDNSResponder.exe
O23 - Service: Java Quick Starter (JavaQuickStarterService) - Sun Microsystems, Inc. - C:\Program Files\Java\jre6\bin\jqs.exe
O23 - Service: PrismXL - New Boundary Technologies, Inc. - C:\Program Files\Common Files\New Boundary\PrismXL\PRISMXL.SYS
O23 - Service: SmartLinkService (SLService) - - C:\WINDOWS\SYSTEM32\slserv.exe
O23 - Service: tomcat6 - Apache Software Foundation - C:\hosting\tomcat\bin\tomcat6.exe
--
End of file - 9476 bytes

Donnie

These are generic instructions for removing this nonsense.

You can also run System Restore from Safe Mode or via Command Prompt.