Lost access to Internet after running Spybot S+D and Adaware

After assisting a friend correct her computer infected with that insidious malware (She ran Spybot S+D and Adaware).   After rebooting, the spyware appeared to have been eradicated; however, she no longer had access to the Internet.

Now that is computer is with me, I am baffled as to where the problem is.

This computer is not connecting to my DHCP server!  No! There are no problems on my end; the problem is strictly within this PC which was working prior to running the aforementioned programs.

In short, I've done the following:
- using ipconfig /release results in the following message: "All adapters bound to DHCP do not have DHCP addresses.";
- ipconfig /all reveals an address of 169.254.12.236 and a subnet of 255.255.0.0 which is a default internal address when Windows 2000 cannot obtain an address from the DHCP server;
- There are 0 packets coming into the card and very few packets leaving the card;
- I have replaced the network card (if only to start fresh as I knew the it was unlikely that the card was dead).  Was a 3COM 3C905C, now a D-Link DFE-530TX;
- I have uninstalled IP and all the network setup;
- I have disabled DHCP client services in Services but restarting failed with a 1053 error;
- The computer has been checked for viruses (several times) using the latest sigs. for Sophos.

I have never seen anything like this before (especially where I can even correct the problem by reinstalling the network components) and I’m out of ideas.

Anyone?