Need Help to Remove Trojan Horse "TR/PSW.kates.C"

[Flybird123]

Problem: Every I start up the computer or open a program I get a slight slowdown followed by a bunch of threat found pop ups from Avira Anti-Virus saying that I have a trojan horse named "TR/PSW.Kates.C". I select to move to quarantine or delete file but it doesn't do anything. When I attempt to manually delete the file, it is instantly recreated. When I scanned this computer for the first time there were several threats detected, I have cleaned them all off except for this one.

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Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 2:08:52 PM, on 10/4/2009
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Unable to get Internet Explorer version!
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:\WINDOWS\system32\ZoneLabs\vsmon.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Avira\AntiVir PersonalEdition Classic\sched.exe
C:\Program Files\Avira\AntiVir PersonalEdition Classic\avguard.exe
C:\Program Files\Java\jre6\bin\jqs.exe
C:\WINDOWS\SOUNDMAN.EXE
C:\Program Files\Avira\AntiVir PersonalEdition Classic\avgnt.exe
C:\WINDOWS\system32\VTTimer.exe
C:\WINDOWS\system32\VTtrayp.exe
C:\Program Files\Microsoft Office\Office12\GrooveMonitor.exe
C:\Program Files\Java\jre6\bin\jusched.exe
C:\Program Files\Zone Labs\ZoneAlarm\zlclient.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\Documents and Settings\Administrator\Desktop\HijackThis.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Local Page =
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Local Page =
R0 - HKCU\Software\Microsoft\Internet Explorer\Toolbar,LinksFolderName =
R3 - Default URLSearchHook is missing
O2 - BHO: AcroIEHelperStub - {18DF081C-E8AD-4283-A596-FA578C2EBDC3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelperShim.dll
O2 - BHO: Groove GFS Browser Helper - {72853161-30C5-4D22-B7F9-0BBC1D38A37E} - C:\PROGRA~1\MICROS~1\Office12\GRA8E1~1.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
O4 - HKLM\..\Run: [SoundMan] SOUNDMAN.EXE
O4 - HKLM\..\Run: [avgnt] "C:\Program Files\Avira\AntiVir PersonalEdition Classic\avgnt.exe" /min
O4 - HKLM\..\Run: [VTTimer] VTTimer.exe
O4 - HKLM\..\Run: [VTTrayp] VTtrayp.exe
O4 - HKLM\..\Run: [GrooveMonitor] "C:\Program Files\Microsoft Office\Office12\GrooveMonitor.exe"
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files\Adobe\Reader 9.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre6\bin\jusched.exe"
O4 - HKLM\..\Run: [KernelFaultCheck] %systemroot%\system32\dumprep 0 -k
O4 - HKLM\..\Run: [ZoneAlarm Client] "C:\Program Files\Zone Labs\ZoneAlarm\zlclient.exe"
O4 - HKUS\S-1-5-19\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-19\..\RunOnce: [nltide_3] rundll32 advpack.dll,LaunchINFSectionEx nLite.inf,C,,4,N (User 'LOCAL SERVICE')
O4 - HKUS\S-1-5-20\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'NETWORK SERVICE')
O4 - HKUS\S-1-5-18\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\RunOnce: [nltide_2] regsvr32 /s /n /i:U shell32 (User 'Default user')
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Restrictions present
O6 - HKLM\Software\Policies\Microsoft\Internet Explorer\Restrictions present
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~1\Office12\EXCEL.EXE/3000
O9 - Extra button: Send to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~1\Office12\ONBttnIE.dll
O9 - Extra 'Tools' menuitem: S&end to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~1\MICROS~1\Office12\ONBttnIE.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~1\Office12\REFIEBAR.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
O13 - DefaultPrefix:
O13 - WWW Prefix:
O13 - Home Prefix:
O13 - Mosaic Prefix:
O13 - FTP Prefix:
O13 - Gopher Prefix:
O18 - Protocol: grooveLocalGWS - {88FED34C-F0CA-4636-A375-3CB6248B04CD} - C:\PROGRA~1\MICROS~1\Office12\GR99D3~1.DLL
O23 - Service: Avira AntiVir Personal - Free Antivirus Scheduler (AntiVirScheduler) - Avira GmbH - C:\Program Files\Avira\AntiVir PersonalEdition Classic\sched.exe
O23 - Service: Avira AntiVir Personal - Free Antivirus Guard (AntiVirService) - Avira GmbH - C:\Program Files\Avira\AntiVir PersonalEdition Classic\avguard.exe
O23 - Service: Java Quick Starter (JavaQuickStarterService) - Sun Microsystems, Inc. - C:\Program Files\Java\jre6\bin\jqs.exe
O23 - Service: TrueVector Internet Monitor (vsmon) - Check Point Software Technologies LTD - C:\WINDOWS\system32\ZoneLabs\vsmon.exe

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End of file - 4878 bytes

[MWR 3 day Mod]

Hi,

We are sorry to see your topic is over three days old and no one has yet been able to respond and offer help.

If you still require assistance, please post a link to your topic in our Waiting for help with malware removal? forum, and our staff will make an effort to assist you as promptly as possible. Only post a LINK to this topic, DO NOT post your DDS log!

Please do not reply to this topic.

If you haven't posted within two days in the "Waiting for help with malware removal?" forum, we will assume you have been able to get assistance in other ways and this topic will be closed.

[NonSuch]

Due to a lack of response, this topic is now closed.

If you still require help, please open a new thread in the Infected? Virus, malware, adware, ransomware, oh my! forum, include a fresh FRST log, and wait for a new helper.