Hijack This Hep

Can someone please take a look at my friends Hijack log. He states that he went to some shady websites and now has numerous annoying pop up ads. He also said his AVG antivirus also detected some viruses/worms but that they were unable to be removed even when running in safe mode.

Logfile of HijackThis v1.99.1
Scan saved at 10:09:55 AM, on 12/22/2006
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\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:\PROGRA~1\Grisoft\AVGFRE~1\avgemc.exe
C:\WINDOWS\System32\gearsec.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\MDM.EXE
C:\WINDOWS\System32\msasvc.exe
C:\WINDOWS\System32\ctfmon.exe
C:\Program Files\Java\j2re1.4.2_03\bin\jusched.exe
C:\windows\system\hpsysdrv.exe
C:\Program Files\HP\hpcoretech\hpcmpmgr.exe
C:\WINDOWS\System32\hphmon05.exe
C:\HP\KBD\KBD.EXE
C:\Program Files\iTunes\iTunesHelper.exe
C:\WINDOWS\System32\VTTimer.exe
C:\WINDOWS\AGRSMMSG.exe
C:\WINDOWS\ALCXMNTR.EXE
C:\Program Files\iPod\bin\iPodService.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe
C:\Program Files\Support.com\bin\tgcmd.exe
C:\WINDOWS\System32\spool\drivers\w32x86\3\hpztsb08.exe
C:\Program Files\MSN Messenger\MsnMsgr.Exe
C:\Program Files\HP\Digital Imaging\bin\hpqtra08.exe
C:\Program Files\Sony Corporation\Picture Package\Picture Package Menu\SonyTray.exe
C:\Program Files\Sony Corporation\Picture Package\Picture Package Applications\Residence.exe
C:\Program Files\Updates from HP\137903\Program\BackWeb-137903.exe
C:\Program Files\HP\hpcoretech\comp\hptskmgr.exe
C:\WINDOWS\System32\wuauclt.exe
C:\Documents and Settings\Owner\Desktop\hijack\HijackThis.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iehome&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iesearch&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Bar = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iesearch&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iesearch&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.yahoo.com/
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iehome&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iesearch&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Bar = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iesearch&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iesearch&locale=EN_US&c=Q304&bd=pavilion&pf=desktop
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.comcast.net/
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Window Title = Microsoft Internet Explorer presented by Comcast
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = :0
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = localhost
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 6.0\Reader\ActiveX\AcroIEHelper.dll
O2 - BHO: (no name) - {549B5CA7-4A86-11D7-A4DF-000874180BB3} - (no file)
O2 - BHO: (no name) - {FDD3B846-8D59-4ffb-8758-209B6AD74ACC} - (no file)
O3 - Toolbar: &Radio - {8E718888-423F-11D2-876E-00A0C9082467} - C:\WINDOWS\System32\msdxm.ocx
O3 - Toolbar: HP view - {B2847E28-5D7D-4DEB-8B67-05D28BCF79F5} - c:\Program Files\HP\Digital Imaging\bin\hpdtlk02.dll
O4 - HKLM\..\Run: [SunJavaUpdateSched] C:\Program Files\Java\j2re1.4.2_03\bin\jusched.exe
O4 - HKLM\..\Run: [hpsysdrv] c:\windows\system\hpsysdrv.exe
O4 - HKLM\..\Run: [HP Component Manager] "C:\Program Files\HP\hpcoretech\hpcmpmgr.exe"
O4 - HKLM\..\Run: [HPHUPD05] c:\Program Files\HP\{45B6180B-DCAB-4093-8EE8-6164457517F0}\hphupd05.exe
O4 - HKLM\..\Run: [HPHmon05] C:\WINDOWS\System32\hphmon05.exe
O4 - HKLM\..\Run: [KBD] C:\HP\KBD\KBD.EXE
O4 - HKLM\..\Run: [TkBellExe] "C:\Program Files\Common Files\Real\Update_OB\realsched.exe" -osboot
O4 - HKLM\..\Run: [iTunesHelper] C:\Program Files\iTunes\iTunesHelper.exe
O4 - HKLM\..\Run: [Recguard] C:\WINDOWS\SMINST\RECGUARD.EXE
O4 - HKLM\..\Run: [VTTimer] VTTimer.exe
O4 - HKLM\..\Run: [AGRSMMSG] AGRSMMSG.exe
O4 - HKLM\..\Run: [PS2] C:\WINDOWS\system32\ps2.exe
O4 - HKLM\..\Run: [AlcxMonitor] ALCXMNTR.EXE
O4 - HKLM\..\Run: [Reminder] "C:\Windows\Creator\Remind_XP.exe"
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe /STARTUP
O4 - HKLM\..\Run: [tgcmd] C:\Program Files\Support.com\bin\tgcmd.exe /server /startmonitor /deaf
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [HPDJ Taskbar Utility] C:\WINDOWS\System32\spool\drivers\w32x86\3\hpztsb08.exe
O4 - HKLM\..\Run: [system spool] C:\WINDOWS\System32\syspools.exe
O4 - HKLM\..\RunOnce: [Spybot - Search & Destroy] "C:\Program Files\Spybot - Search & Destroy\SpybotSD.exe" /autocheck
O4 - HKCU\..\Run: [MsnMsgr] "C:\Program Files\MSN Messenger\MsnMsgr.Exe" /background
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\System32\ctfmon.exe
O4 - HKCU\..\Run: [system spool] C:\WINDOWS\System32\syspools.exe
O4 - Startup: IMStart.lnk = C:\Program Files\InterMute\IMStart.exe
O4 - Global Startup: HP Digital Imaging Monitor.lnk = C:\Program Files\HP\Digital Imaging\bin\hpqtra08.exe
O4 - Global Startup: Microsoft Office.lnk = C:\Program Files\Microsoft Office\Office\OSA9.EXE
O4 - Global Startup: Picture Package Menu.lnk = ?
O4 - Global Startup: Picture Package VCD Maker.lnk = ?
O4 - Global Startup: Quicken Scheduled Updates.lnk = C:\Program Files\Quicken\bagent.exe
O4 - Global Startup: Updates from HP.lnk = C:\Program Files\Updates from HP\137903\Program\BackWeb-137903.exe
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MI1933~1\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\WINDOWS\System32\msjava.dll (file missing)
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\WINDOWS\System32\msjava.dll (file missing)
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MI1933~1\OFFICE11\REFIEBAR.DLL
O16 - DPF: {9600F64D-755F-11D4-A47F-0001023E6D5A} (Shutterfly Picture Upload Plugin) - http://web1.shutterfly.com/downloads/Uploader.cab
O20 - Winlogon Notify: igfxcui - C:\WINDOWS\SYSTEM32\igfxsrvc.dll
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: AVG E-mail Scanner (AVGEMS) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVGFRE~1\avgemc.exe
O23 - Service: Gear Security Service (GEARSecurity) - GEAR Software - C:\WINDOWS\System32\gearsec.exe
O23 - Service: ICF - Unknown owner - C:\WINDOWS\System32:svchost.exe
O23 - Service: iPod Service (iPodService) - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Microsoft authenticate service (MsaSvc) - Unknown owner - C:\WINDOWS\System32\msasvc.exe