Do I have malware blocking my JAVA?

For the lst 8 weeks, I cannot get my JAVA applets running via Vista Ultimate SP1 and IE 7 (latest version). I have tried numerous times to uninstall and re-install Java JRE but to no success. I tried older vesion of JAVA JRE and even the latest one, which came out a week ago (1.6 update 11). I have wiped my JAVA folder. Kaspersky KAV 2009 reports no viruses. I have tried booting up Vista with Kaspersky disabled, and still no result. I have basically tried everything I can think of.

When I boot in SAFE MODE, all works just fine. All JAVA applets work just fine.

Any help / suggestions are appreciated!

Here is my HiJack logfile

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 9:38:48 AM, on 12/6/2008
Platform: Windows Vista SP1 (WinNT 6.00.1905)
MSIE: Internet Explorer v7.00 (7.00.6001.18000)
Boot mode: Normal

Running processes:
C:\Windows\system32\Dwm.exe
C:\Windows\system32\taskeng.exe
C:\Windows\Explorer.EXE
C:\Windows\System32\rundll32.exe
C:\Program Files\Kaspersky Lab\Kaspersky Anti-Virus 2009\avp.exe
C:\Program Files\Adobe\Reader 9.0\Reader\reader_sl.exe
C:\Program Files\Microsoft Office\Office12\GrooveMonitor.exe
C:\Program Files\Realtek\Audio\HDA\RtHDVCpl.exe
C:\Program Files\AIM6\aim6.exe
C:\Program Files\Windows Live\Messenger\msnmsgr.exe
C:\Program Files\Semargl\SemTop!\SemTop!.exe
C:\Program Files\Skype\Phone\Skype.exe
C:\Program Files\HP\Digital Imaging\bin\hpqtra08.exe
C:\Program Files\AIM6\aolsoftware.exe
C:\Program Files\Internet Explorer\ieuser.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\HP\Digital Imaging\bin\hpqSTE08.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

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
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,SearchAssistant =
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,CustomizeSearch =
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = *.local
R0 - HKCU\Software\Microsoft\Internet Explorer\Toolbar,LinksFolderName =
O1 - Hosts: ::1 localhost
O1 - Hosts: 66.98.148.65 auto.search.msn.es
O2 - BHO: AcroIEHelperStub - {18DF081C-E8AD-4283-A596-FA578C2EBDC3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelperShim.dll
O2 - BHO: IEVkbdBHO - {59273AB4-E7D3-40F9-A1A8-6FA9CCA1862C} - C:\Program Files\Kaspersky Lab\Kaspersky Anti-Virus 2009\ievkbd.dll
O2 - BHO: Groove GFS Browser Helper - {72853161-30C5-4D22-B7F9-0BBC1D38A37E} - C:\Program Files\Microsoft Office\Office12\GrooveShellExtensions.dll
O2 - BHO: Java(tm) Plug-In SSV Helper - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre6\bin\ssv.dll
O2 - BHO: (no name) - {7E853D72-626A-48EC-A868-BA8D5E23E045} - (no file)
O2 - BHO: Java(tm) Plug-In 2 SSV Helper - {DBC80044-A445-435b-BC74-9C25C1C588A9} - C:\Program Files\Java\jre6\bin\jp2ssv.dll
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\Windows\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [NvMediaCenter] RUNDLL32.EXE C:\Windows\system32\NvMcTray.dll,NvTaskbarInit
O4 - HKLM\..\Run: [AVP] "C:\Program Files\Kaspersky Lab\Kaspersky Anti-Virus 2009\avp.exe"
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files\Adobe\Reader 9.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [GrooveMonitor] "C:\Program Files\Microsoft Office\Office12\GrooveMonitor.exe"
O4 - HKLM\..\Run: [LifeCam] "C:\Program Files\Microsoft LifeCam\LifeExp.exe"
O4 - HKLM\..\Run: [RtHDVCpl] C:\Program Files\Realtek\Audio\HDA\RtHDVCpl.exe
O4 - HKLM\..\Run: [Skytel] C:\Program Files\Realtek\Audio\HDA\Skytel.exe
O4 - HKLM\..\Run: [Windows Defender] %ProgramFiles%\Windows Defender\MSASCui.exe -hide
O4 - HKCU\..\Run: [Aim6] "C:\Program Files\AIM6\aim6.exe" /d locale=en-US ee://aol/imApp /HIDEBL
O4 - HKCU\..\Run: [msnmsgr] "C:\Program Files\Windows Live\Messenger\MsnMsgr.Exe" /background
O4 - HKCU\..\Run: [SemTop!] C:\Program Files\Semargl\SemTop!\SemTop!.exe
O4 - HKCU\..\Run: [Skype] "C:\Program Files\Skype\Phone\Skype.exe" /nosplash /minimized
O4 - HKUS\S-1-5-19\..\Run: [Sidebar] %ProgramFiles%\Windows Sidebar\Sidebar.exe /detectMem (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-19\..\Run: [WindowsWelcomeCenter] rundll32.exe oobefldr.dll,ShowWelcomeCenter (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-20\..\Run: [Sidebar] %ProgramFiles%\Windows Sidebar\Sidebar.exe /detectMem (User 'NETWORK SERVICE')
O4 - Startup: OneNote 2007 Screen Clipper and Launcher.lnk = C:\Program Files\Microsoft Office\Office12\ONENOTEM.EXE
O4 - Global Startup: HP Digital Imaging Monitor.lnk = C:\Program Files\HP\Digital Imaging\bin\hpqtra08.exe
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\Office12\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre6\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre6\bin\ssv.dll
O9 - Extra button: Web traffic protection statistics - {1F460357-8A94-4D71-9CA3-AA4ACF32ED8E} - C:\Program Files\Kaspersky Lab\Kaspersky Anti-Virus 2009\SCIEPlgn.dll
O9 - Extra button: Send to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~2\Office12\ONBttnIE.dll
O9 - Extra 'Tools' menuitem: S&end to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~2\Office12\ONBttnIE.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\Office12\REFIEBAR.DLL
O13 - Gopher Prefix:
O16 - DPF: {3EA4FA88-E0BE-419A-A732-9B79B87A6ED0} (CTVUAxCtrl Object) - http://dl.tvunetworks.com/TVUAx.cab
O16 - DPF: {49232000-16E4-426C-A231-62846947304B} (SysData Class) - http://ipgweb.cce.hp.com/rdqaio/downloads/sysinfo.cab
O16 - DPF: {4C39376E-FA9D-4349-BACC-D305C1750EF3} (EPUImageControl Class) - http://tools.ebayimg.com/eps/wl/activex/eBay_Enhanced_Picture_Control_v1-0-24-0.cab
O16 - DPF: {C1FDEE68-98D5-4F42-A4DD-D0BECF5077EB} (EPUImageControl Class) - http://tools.ebayimg.com/eps/wl/activex/eBay_Enhanced_Picture_Control_v1-0-27-0.cab
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - http://fpdownload2.macromedia.com/get/s ... wflash.cab
O18 - Protocol: grooveLocalGWS - {88FED34C-F0CA-4636-A375-3CB6248B04CD} - C:\Program Files\Microsoft Office\Office12\GrooveSystemServices.dll
O18 - Protocol: skype4com - {FFC8B962-9B40-4DFF-9458-1830C7DD7F5D} - C:\PROGRA~1\COMMON~1\Skype\SKYPE4~1.DLL
O20 - AppInit_DLLs: C:\PROGRA~1\KASPER~1\KASPER~1\mzvkbd.dll,C:\PROGRA~1\KASPER~1\KASPER~1\mzvkbd3.dll
O22 - SharedTaskScheduler: Windows DreamScene - {E31004D1-A431-41B8-826F-E902F9D95C81} - C:\Windows\System32\DreamScene.dll
O23 - Service: Kaspersky Anti-Virus (AVP) - Kaspersky Lab - C:\Program Files\Kaspersky Lab\Kaspersky Anti-Virus 2009\avp.exe
O23 - Service: Diskeeper - Diskeeper Corporation - C:\Program Files\Diskeeper Corporation\Diskeeper\DkService.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\1150\Intel 32\IDriverT.exe
O23 - Service: Intuit Update Service (IntuitUpdateService) - Intuit Inc. - C:\Program Files\Common Files\Intuit\Update Service\IntuitUpdateService.exe
O23 - Service: LightScribeService Direct Disc Labeling Service (LightScribeService) - Hewlett-Packard Company - C:\Program Files\Common Files\LightScribe\LSSrvc.exe
O23 - Service: NMIndexingService - Nero AG - C:\Program Files\Common Files\Nero\Lib\NMIndexingService.exe
O23 - Service: NVIDIA Display Driver Service (nvsvc) - NVIDIA Corporation - C:\Windows\system32\nvvsvc.exe
O23 - Service: PnkBstrA - Unknown owner - C:\Windows\system32\PnkBstrA.exe
O23 - Service: SiSoftware Deployment Agent Service (SandraAgentSrv) - SiSoftware - C:\Program Files\SiSoftware\SiSoftware Sandra Professional Business 2009\RpcAgentSrv.exe
O23 - Service: Viewpoint Manager Service - Viewpoint Corporation - C:\Program Files\Viewpoint\Common\ViewpointService.exe

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End of file - 7802 bytes

Welcome to the Malware removal Forums.

Since it has been a few days since you scanned your computer with HijackThis, we will need a new HijackThis log. If you have not already downloaded Random's System Information Tool (RSIT), please download Random's System Information Tool (RSIT) by random/random which includes a HijackThis log and save it to your desktop. If you have RSIT already on your computer, please run it again.

1. Double click on RSIT.exe to run RSIT.
2. Click Continue at the disclaimer screen.
3. After it has finished, two logs will open. Please post the contents of both. log.txt will be maximized and info.txt will be minimized.

Thank you for your patience.

If you have already posted this log at another forum or if you decide to seek help at another forum, please let us know. There is a shortage of helpers and taking the time of two volunteer helpers means that someone else may not be helped.

While we are working on your HijackThis log, please:

1. Reply to this thread; do not start another!
2. Do not make any changes on your computer during the cleaning process or download/add programs on your computer unless instructed to do so.
3. Do not run any other tool until instructed to do so!
4. Let me know if any of the links do not work or if any of the tools do not work.
5. Tell me about problems or symptoms that occur during the fix.
6. Do not run any other programs or open any other windows while doing a fix.
7. Ask any questions that you have regarding the fix(es), the infection(s), the performance of your computer, etc.

Thanks.

lack of response,