Ok.Lets download ComboFix.exe. This will give me a better view to the files running and also hidden on your computer and also those in the registry..Please visit this webpage for download links, and instructions for running the tool:
A guide and tutorial on using ComboFix

Please ensure you read this guide carefully and install the Recovery Console first.This applies to XP Pro and XP Home users only.If you have SP3 installed you will need to use SP2
The Windows Recovery Console will allow you to boot up into a special recovery (repair) mode. This allows us to more easily help you should your computer have a problem after an attempted removal of malware. It is a simple procedure that will only take a few moments of your time.
Once installed, you should get a prompt that says:
The Recovery Console was successfully installed.
Please continue as follows:
(1) Close/disable all anti virus and anti malware programs so they do not interfere with the running of ComboFix.
(2) Click Yes to allow ComboFix to continue scanning for malware.
When the tool is finished, it will produce a report for you.
Please include the following reports for further review, and so we may continue cleansing the system:
C:\ComboFix.txt
New HijackThis log.
Caution: Never run and remove files with Combofix unless supervised by a qualified security analyst who is experienced in the use of Combofix. Mal use can cause serious computer problems
NOTE: Combofix prevents autorun of all CDs, floppies and USB devices to assist with malware removal & increase security. If this is an issue or makes it difficult for you - please let me know.

=======================================

Please download SDFix from here and save it to your desktop
Double click SDFix.exe and it will extract the files to %systemdrive%
(Drive that contains the Windows Directory, typically C:\SDFix)
Please then reboot your computer in Safe Mode by doing the following :
Restart your computer
After hearing your computer beep once during startup, but before the Windows icon appears, tap the F8 key continually;
Instead of Windows loading as normal, the Advanced Options Menu should appear;
Select the first option, to run Windows in Safe Mode, then press Enter.
Choose your usual account.
Open the extracted SDFix folder and double click RunThis.bat to start the script.
Type Y to begin the cleanup process.
It will remove any Trojan Services and Registry Entries that it finds then prompt you to press any key to Reboot.
Press any Key and it will restart the PC.
When the PC restarts the Fixtool will run again and complete the removal process then display Finished, press any key to end the script and load your desktop icons.
Once the desktop icons load the SDFix report will open on screen and also save into the SDFix folder as Report.txt
(Report.txt will also be copied to Clipboard ready for posting back on the forum).
Please copy and paste that log in your next reply.

I have Vista. It said in you post that this process was for XP only. Please let me know what I need to do with this operating system.

Thanks for the Help!!!

Ok.Dont bother with SDFix and the Recovery Console.Just run the Combofix.

ComboFix 08-06-15.4 - Peelzy 2008-06-15 22:26:31.1 - NTFSx86
Microsoft® Windows Vista™ Home Basic 6.0.6000.0.1252.1.1033.18.1308 [GMT -4:00]
Running from: C:\Users\Peelzy\Desktop\ComboFix.exe
.

((((((((((((((((((((((((( Files Created from 2008-05-16 to 2008-06-16 )))))))))))))))))))))))))))))))
.

No new files created in this timespan

.
(((((((((((((((((((((((((((((((((((((((( Find3M Report )))))))))))))))))))))))))))))))))))))))))))))))))) ))
.
2008-06-15 23:07 --------- d-----w C:\Program Files\Common Files\Symantec Shared
2008-06-15 22:58 --------- d-----w C:\ProgramData\Google Updater
2008-06-15 20:49 --------- d-----w C:\Users\Peelzy\AppData\Roaming\uTorrent
2008-06-15 20:44 --------- d-----w C:\Program Files\Norton Security Scan
2008-06-14 17:49 --------- dc----w C:\Program Files\Final Draft Tagger
2008-06-14 17:49 --------- dc----w C:\Program Files\Final Draft 7
2008-06-14 17:49 --------- d-----w C:\ProgramData\Final Draft
2008-06-14 17:48 13,312 ----a-w C:\Windows\System32\paplso.dll
2008-06-14 17:47 --------- dc----w C:\Program Files\Common Files\Wise Installation Wizard
2008-06-14 15:22 --------- dc----w C:\Program Files\Common Files\PX Storage Engine
2008-06-14 10:55 --------- d-----w C:\Program Files\Windows Mail
2008-06-12 02:24 --------- d-----w C:\Users\Peelzy\AppData\Roaming\ZoomBrowser EX
2008-06-12 02:09 --------- d-----w C:\ProgramData\ZoomBrowser
2008-06-06 05:32 --------- d-----w C:\Users\Peelzy\AppData\Roaming\Canon
2008-06-06 02:42 --------- dc----w C:\Program Files\Canon
2008-06-04 21:24 --------- d-----w C:\Users\Peelzy\AppData\Roaming\OpenOffice.org2
2008-06-01 22:41 --------- dc----w C:\Program Files\Common Files\Skype
2008-06-01 22:41 --------- d-----w C:\Users\Peelzy\AppData\Roaming\Skype
2008-05-30 03:19 --------- dc----w C:\Program Files\iTunes
2008-05-30 03:19 --------- dc----w C:\Program Files\iPod
2008-05-30 03:18 --------- dc----w C:\Program Files\QuickTime
2008-05-17 13:23 --------- dc----w C:\Program Files\Safari
2008-05-17 13:20 --------- dc----w C:\Program Files\Apple Software Update
2008-05-16 03:29 --------- d---a-w C:\ProgramData\TEMP
2008-05-10 03:30 14,848 ----a-w C:\Windows\System32\wshrm.dll
2008-05-10 01:21 113,664 ----a-w C:\Windows\system32\drivers\rmcast.sys
2008-04-26 08:02 1,327,104 ----a-w C:\Windows\System32\quartz.dll
2008-04-25 04:23 826,368 ----a-w C:\Windows\System32\wininet.dll
2008-04-25 04:23 56,320 ----a-w C:\Windows\System32\iesetup.dll
2008-04-25 04:23 52,736 ----a-w C:\Windows\AppPatch\iebrshim.dll
2008-04-25 04:22 26,624 ----a-w C:\Windows\System32\ieUnatt.exe
2008-03-28 23:03 129,520 ------w C:\Windows\System32\PxAFS.DLL
2007-10-16 00:20 174 --sha-w C:\Program Files\desktop.ini
.

((((((((((((((((((((((((((((((((((((( Reg Loading Points ))))))))))))))))))))))))))))))))))))))))))))))))))
.
.
*Note* empty entries & legit default entries are not shown
REGEDIT4

[HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\Curre ntVersion\Run]
"msnmsgr"="C:\Program Files\Windows Live\Messenger\msnmsgr.exe" [2007-10-18 12:34 5724184]

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\Curr entVersion\Run]
"SynTPEnh"="C:\Program Files\Synaptics\SynTP\SynTPEnh.exe" [2006-11-20 13:51 815104]
"QuickTime Task"="C:\Program Files\QuickTime\QTTask.exe" [2008-03-28 23:37 413696]
"iTunesHelper"="C:\Program Files\iTunes\iTunesHelper.exe" [2008-03-30 10:36 267048]

[HKLM\~\startupfolder\C:^ProgramData^Microsoft^Wind ows^Start Menu^Programs^Startup^Digital Line Detect.lnk]
path=C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Startup\Digital Line Detect.lnk
backup=C:\Windows\pss\Digital Line Detect.lnk.CommonStartup
backupExtension=.CommonStartup

[HKLM\~\startupfolder\C:^ProgramData^Microsoft^Wind ows^Start Menu^Programs^Startup^Google Updater.lnk]
path=C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Startup\Google Updater.lnk
backup=C:\Windows\pss\Google Updater.lnk.CommonStartup
backupExtension=.CommonStartup

[HKLM\~\startupfolder\C:^ProgramData^Microsoft^Wind ows^Start Menu^Programs^Startup^QuickSet.lnk]
path=C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Startup\QuickSet.lnk
backup=C:\Windows\pss\QuickSet.lnk.CommonStartup
backupExtension=.CommonStartup

[HKLM\~\startupfolder\C:^Users^Peelzy^AppData^Roami ng^Microsoft^Windows^Start Menu^Programs^Startup^OpenOffice.org 2.3.lnk]
path=C:\Users\Peelzy\AppData\Roaming\Microsoft\Win dows\Start Menu\Programs\Startup\OpenOffice.org 2.3.lnk
backup=C:\Windows\pss\OpenOffice.org 2.3.lnk.Startup
backupExtension=.Startup

[HKLM\~\startupfolder\C:^Users^Peelzy^AppData^Roami ng^Microsoft^Windows^Start Menu^Programs^Startup^WordWeb.lnk]
path=C:\Users\Peelzy\AppData\Roaming\Microsoft\Win dows\Start Menu\Programs\Startup\WordWeb.lnk
backup=C:\Windows\pss\WordWeb.lnk.Startup
backupExtension=.Startup

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\Adobe Reader Speed Launcher]
--a--c--- 2008-01-11 22:16 39792 C:\Program Files\Adobe\Reader 8.0\Reader\Reader_sl.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\ATICCC]
--a--c--- 2006-07-11 18:12 90112 C:\Program Files\ATI Technologies\ATI.ACE\CLIStart.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\Broadcom Wireless Manager UI]
--a------ 2006-11-21 20:52 1540096 C:\Windows\system32\WLTRAY.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\DellSupport]
--a------ 2007-03-15 13:09 460784 C:\Program Files\DellSupport\DSAgnt.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\dscactivate]
--a--c--- 2007-07-30 15:40 16384 c:\dell\dsca.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\ECenter]
--a--c--- 2007-05-25 02:03 17920 C:\Dell\E-Center\EULALauncher.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\Google Desktop Search]
--a------ 2007-09-27 15:33 1862144 C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\googletalk]
--a------ 2007-01-01 17:22 3739648 C:\Program Files\Google\Google Talk\googletalk.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\ISUSScheduler]
--a------ 2006-10-03 12:37 81920 C:\Program Files\Common Files\InstallShield\UpdateService\issch.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\iTunesHelper]
--a--c--- 2008-03-30 10:36 267048 C:\Program Files\iTunes\iTunesHelper.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\MskAgentexe]
C:\Program Files\McAfee\MSK\MskAgent.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\MsnMsgr]
--a--c--- 2007-10-18 12:34 5724184 C:\Program Files\Windows Live\Messenger\msnmsgr.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\PDVDDXSrv]
--------- 2006-10-20 18:23 118784 C:\Program Files\CyberLink\PowerDVD DX\PDVDDXSrv.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\QuickTime Task]
--a--c--- 2008-03-28 23:37 413696 C:\Program Files\QuickTime\QTTask.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\SDTray]
C:\Program Files\Spyware Doctor\SDTrayApp.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\SigmatelSysTrayApp]
--a------ 2007-02-08 01:11 303104 C:\Windows\sttray.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\Skype]
-ra------ 2008-04-23 17:45 22058792 C:\Program Files\Skype\\Phone\Skype.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\swg]
--a------ 2007-10-15 13:13 68856 C:\Program Files\Google\GoogleToolbarNotifier\GoogleToolbarNo tifier.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\SynTPEnh]
--a------ 2006-11-20 13:51 815104 C:\Program Files\Synaptics\SynTP\SynTPEnh.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\Windows Defender]
--a------ 2007-09-27 22:52 1006264 C:\Program Files\Windows Defender\MSASCui.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\WindowsWelcomeCenter]
--a------ 2006-11-02 08:34 2159104 C:\Windows\System32\oobefldr.dll

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\WMPNSCFG]
--a------ 2006-11-02 08:34 201728 C:\Program Files\Windows Media Player\WMPNSCFG.exe

[HKEY_LOCAL_MACHINE\software\microsoft\shared tools\msconfig\startupreg\Yahoo! Pager]
--a------ 2007-08-30 17:43 4670704 C:\PROGRA~1\Yahoo!\MESSEN~1\YAHOOM~1.exe

[HKEY_LOCAL_MACHINE\software\microsoft\security center\Monitoring\McAfeeAntiSpyware]
"DisableMonitoring"=dword:00000001

[HKLM\~\services\sharedaccess\parameters\firewallpo licy\FirewallRules]
"{881E06B2-1B5C-4688-8CD5-C9DFD3036842}"= UDP:C:\Program Files\Common Files\McAfee\MNA\McNASvc.exe:McAfee Network Agent
"{C5D7AE26-63B0-47A6-9805-2EA6BC973888}"= UDP:C:\Program Files\Google\Google Talk\googletalk.exe:Google Talk
"{53BED0B2-1EA9-4B14-B72D-F1604E53BE22}"= TCP:C:\Program Files\Google\Google Talk\googletalk.exe:Google Talk
"{942F63FA-B235-4FF7-A86C-8D748D037AF0}"= UDP:C:\Program Files\Yahoo!\Messenger\YahooMessenger.exe:Yahoo! Messenger
"{1955ADAF-9348-4539-B914-1E726A720BC1}"= TCP:C:\Program Files\Yahoo!\Messenger\YahooMessenger.exe:Yahoo! Messenger
"{EDAE0B23-DA7C-4841-868F-1F0D8D5BB77D}"= UDP:C:\Program Files\Yahoo!\Messenger\YServer.exe:Yahoo! FT Server
"{5337734F-EE6E-4164-83EB-98723ED4A172}"= TCP:C:\Program Files\Yahoo!\Messenger\YServer.exe:Yahoo! FT Server
"TCP Query User{8ABD19A9-6623-40B8-A6E8-79CF46514DC5}C:\\program files\\yahoo!\\messenger\\yahoomessenger.exe"= UDP:C:\program files\yahoo!\messenger\yahoomessenger.exe:Yahoo! Messenger
"UDP Query User{ADACAE74-EDA2-49AA-ADF8-302FAD71A83A}C:\\program files\\yahoo!\\messenger\\yahoomessenger.exe"= TCP:C:\program files\yahoo!\messenger\yahoomessenger.exe:Yahoo! Messenger
"TCP Query User{A354B29F-CFE3-4FA4-9ED0-27C5148D463B}C:\\program files\\online tv & radio stations\\onlinetv.exe"= UDP:C:\program files\online tv & radio stations\onlinetv.exe:OnlineTV
"UDP Query User{5D4B5136-446F-47FE-8597-A8C0F0EBB397}C:\\program files\\online tv & radio stations\\onlinetv.exe"= TCP:C:\program files\online tv & radio stations\onlinetv.exe:OnlineTV
"TCP Query User{ADE4D08B-DC84-46F7-81E5-93ECDF6EB3AB}C:\\program files\\sopcast\\sopcast.exe"= UDP:C:\program files\sopcast\sopcast.exe:SopCast Main Application
"UDP Query User{5F405949-9157-4B6A-A9B1-ABB18F675FAA}C:\\program files\\sopcast\\sopcast.exe"= TCP:C:\program files\sopcast\sopcast.exe:SopCast Main Application
"TCP Query User{597B92A4-E61A-4132-9743-38512F71D581}C:\\users\\peelzy\\appdata\\roaming\\ sopcast\\adv\\sopadver.exe"= UDP:C:\users\peelzy\appdata\roaming\sopcast\adv\so padver.exe:sopadver.exe
"UDP Query User{6A0751E3-7782-4D72-BDBF-79815332748E}C:\\users\\peelzy\\appdata\\roaming\\ sopcast\\adv\\sopadver.exe"= TCP:C:\users\peelzy\appdata\roaming\sopcast\adv\so padver.exe:sopadver.exe
"TCP Query User{5FFF29E5-BCF6-40C7-86BF-B6B1305E304C}C:\\program files\\ppstream\\ppstream.exe"= UDP:C:\program files\ppstream\ppstream.exe:PPS????
"UDP Query User{3DAE7E4B-78D4-4317-B817-51B9CE9D3C1E}C:\\program files\\ppstream\\ppstream.exe"= TCP:C:\program files\ppstream\ppstream.exe:PPS????
"{80871BA7-EB2F-493F-B772-69E6E548AE83}"= UDP:C:\Program Files\iTunes\iTunes.exe:iTunes
"{3F81E15F-38D7-433B-A38F-FBB1AD96F7C1}"= TCP:C:\Program Files\iTunes\iTunes.exe:iTunes
"{A58C82B5-69D1-4DF9-8AA5-11D270130EAA}"= C:\Program Files\Windows Live\Messenger\livecall.exe:Windows Live Messenger (Phone)
"{A7EFC44B-EF2B-48B1-813D-5115FC2958B6}"= UDP:C:\Program Files\iTunes\iTunes.exe:iTunes
"{06D33097-16C1-476A-9A9C-7CB18E982E91}"= TCP:C:\Program Files\iTunes\iTunes.exe:iTunes
"{B4863B2B-7AC6-4AD0-8245-E788B1D66112}"= Disabled:UDP:C:\Program Files\Skype\Phone\Skype.exe:Skype
"{AF0D453E-3E7C-4FA7-8CE9-57D9D2BBB2AC}"= TCP:C:\Program Files\Skype\Phone\Skype.exe:Skype
"{10681B51-EF32-4872-AF29-563DA2A52CA7}"= UDP:C:\Program Files\uTorrent\uTorrent.exe:µTorrent
"{0FA59B3B-727B-453D-8088-070115B25A54}"= TCP:C:\Program Files\uTorrent\uTorrent.exe:µTorrent

[HKLM\~\services\sharedaccess\parameters\firewallpo licy\RestrictedServices\Static\System]
"DFSR-1"= RPort=5722|UDP:%SystemRoot%\system32\svchost.exe|S vc=DFSR:Allow inbound TCP traffic|

[HKLM\~\services\sharedaccess\parameters\firewallpo licy\StandardProfile\AuthorizedApplications\List]
"C:\\Program Files\\PPStream\\PPStream.exe"= C:\Program Files\PPStream\PPStream.exe:*:Enabled:PPSÍøÂçµçÊÓ

R0 AtiPcie;ATI PCI Express (3GIO) Filter;C:\Windows\system32\DRIVERS\AtiPcie.sys [2006-10-30 11:22]
R3 R300;R300;C:\Windows\system32\DRIVERS\atikmdag.sys [2006-11-25 01:46]
S3 RimSerPort;RIM Virtual Serial Port;C:\Windows\system32\DRIVERS\RimSerial.sys [2005-08-16 13:02]

[HKEY_LOCAL_MACHINE\software\microsoft\windows nt\currentversion\svchost]
LocalServiceNoNetwork REG_MULTI_SZ PLA DPS BFE mpssvc

[HKEY_CURRENT_USER\software\microsoft\windows\curre ntversion\explorer\mountpoints2\F]
\shell\AutoRun\command - "F:\Install FreeAgent Tools.exe" /run

[HKEY_CURRENT_USER\software\microsoft\windows\curre ntversion\explorer\mountpoints2\{024927e2-ad86-11dc-8fd8-001c2398bbc5}]
\shell\AutoRun\command - F:\WD_Windows_Tools\setup.exe

[HKEY_CURRENT_USER\software\microsoft\windows\curre ntversion\explorer\mountpoints2\{3ae1afaf-f357-11dc-b695-001c2398bbc5}]
\shell\AutoRun\command - "F:\Install FreeAgent Tools.exe" /run

[HKEY_CURRENT_USER\software\microsoft\windows\curre ntversion\explorer\mountpoints2\{7e21f387-a74a-11dc-8a23-001c2398bbc5}]
\shell\AutoRun\command - wd_windows_tools\setup.exe

*Newly Created Service* - CATCHME
.
Contents of the 'Scheduled Tasks' folder
"2008-06-14 02:54:16 C:\Windows\Tasks\Norton Security Scan.job"
- C:\Program Files\Norton Security Scan\Nss.exe
.
************************************************** ************************

catchme 0.3.1361 W2K/XP/Vista - rootkit/stealth malware detector by Gmer, http://www.gmer.net
Rootkit scan 2008-06-15 22:29:17
Windows 6.0.6000 NTFS

scanning hidden processes ...

scanning hidden autostart entries ...

scanning hidden files ...

scan completed successfully
hidden files: 0

************************************************** ************************
.
Completion time: 2008-06-15 22:30:48
ComboFix-quarantined-files.txt 2008-06-16 02:30:30

The system cannot find message text for message number 0x2379 in the message file for Application.
The system cannot find message text for message number 0x2379 in the message file for Application.

188 --- E O F --- 2008-06-14 23:59:25

There is nothing wrong in the log.Its all fine all normal.

This is so strange...I just went and clicked on a file and nothing happened. Do you think that something in the process that you gave me helped clear it up.

Sorry to waste your time. There really was a problem...its odd the way it cleared up.

Thanks Very Much!!!