Virus. Downloads Windows Updates but cannot surf web

To be honest I absolutely hate AVG.  It's probably the worst.  If you can download a trial of TrendMicro or use housecall http://housecall65.trendmicro.com ...

Have you tried pinging in dos any sites?  Are you able to ping your gateway?  If you can ping an IP address can you ping any DNS addresses?

Have you restarted the computer after AVG removed the virus?

What virus was removed?

Yes, I can ping IP's and web sites.  I am able to ping www.google.com however I cannot browse to any websites.  I even tried going to websites using their IP and it does not work.  Yes, I have rebooted a few times since running virus scan.

The virus's are:
Trojan horse PSW.Generic5.PXW    C:\syseymt.exe
Trojan horse Downloader.Zlob.FJT   C:\Windows\casinom.exe

Here is the HijackThis log file.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 10:15:27 PM, on 11/1/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.5730.0013)
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\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
C:\Program Files\Java\jre6\bin\jqs.exe
C:\WINDOWS\wanmpsvc.exe
C:\Program Files\Java\jre6\bin\jusched.exe
C:\PROGRA~1\AVG\AVG8\avgtray.exe
C:\WINDOWS\system32\ctfmon.exe
C:\PROGRA~1\AVG\AVG8\avgrsx.exe
C:\PROGRA~1\AVG\AVG8\avgemc.exe
C:\WINDOWS\system32\wuauclt.exe
C:\WINDOWS\SoftwareDistribution\Download\8434d48f46ed0f72046e730a838b6254\update\update.exe
C:\WINDOWS\system32\wuauclt.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe
 
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://verizon.yahoo.com
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Bar = http://red.clientapps.yahoo.com/customize/ie/defaults/sb/verizon/*http://www.yahoo.com/search/ie.html
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKCU\Software\Microsoft\Internet Explorer\SearchURL,(Default) = http://as.weatherstudio.com/dp/search?x=wKX1ILEOi+UdWpSlz2q9Dzn13Emww/YwEc8oELaciVoEoLZdnzJeupzrqllKpjZQwVFSmYhbiFdjiVzD82wHqwHh9/wMkoFmUmufGIzYsAi5fiC0rdjuelSX5cQorKg/iJO1dSFB2rwOuAsAIb8Wcwbx7fbqGYUj
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = 127.0.0.1
R3 - URLSearchHook: (no name) - _{CFBFAE00-17A6-11D0-99CB-00C04FD64497} - (no file)
R3 - URLSearchHook: (no name) - {2A158A6B-3CF1-1424-81DB-15349409E5EA} - (no file)
R3 - URLSearchHook: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - (no file)
R3 - URLSearchHook: (no name) -  - (no file)
R3 - URLSearchHook: (no name) - {37D2CDBF-2AF4-44AA-8113-BD0D2DA3C2B8} - (no file)
F2 - REG:system.ini: UserInit=C:\WINDOWS\system32\userinit.exe
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll
O2 - BHO: ZangoToolbar - {5CBE2611-C31B-401F-89BC-4CBB25E853D7} - C:\Program Files\ZangoToolbar\Bin\4.8.2.0\ZbHostIE.dll (file missing)
O2 - BHO: Java(tm) Plug-In SSV Helper - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre6\bin\ssv.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
O2 - BHO: SidebarAutoLaunch Class - {F2AA9440-6328-4933-B7C9-A6CCDF9CBF6D} - C:\Program Files\Yahoo!\browser\YSidebarIEBHO.dll (file missing)
O2 - BHO: (no name) - {FDD3B846-8D59-4ffb-8758-209B6AD74ACC} - C:\Program Files\Microsoft Money\System\mnyviewer.dll
O3 - Toolbar: JunoBar - {5854FAC4-5BF0-47DD-B5A9-A5EA8CFF3CF4} - C:\Program Files\Juno\toolbar.dll (file missing)
O3 - Toolbar: ZangoToolbar - {5CBE2611-C31B-401F-89BC-4CBB25E853D7} - C:\Program Files\ZangoToolbar\Bin\4.8.2.0\ZbHostIE.dll (file missing)
O4 - HKLM\..\Run: [ccApp] C:\Program Files\Common Files\Symantec Shared\ccApp.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre6\bin\jusched.exe"
O4 - HKLM\..\Run: [AVG8_TRAY] C:\PROGRA~1\AVG\AVG8\avgtray.exe
O4 - HKLM\..\RunOnce: [DeleteYahooUninstaller] command /c del C:\PROGRA~1\YAHOO!\COMMON\UNINST~1.EXE
O4 - HKCU\..\Run: [fzrf] C:\Program Files\Common Files\fzrf\fzrfm.exe
O4 - HKCU\..\Run: [Akhm] C:\Program Files\Common Files\s?stem\e?plorer.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [Microsoft Works Update Detection] C:\Program Files\Microsoft Works\WkDetect.exe
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Control Panel present
O9 - Extra button: Real.com - {CD67F990-D8E9-11d2-98FE-00C0F0318AFE} - C:\WINDOWS\System32\Shdocvw.dll
O9 - Extra button: MoneySide - {E023F504-0C5A-4750-A1E7-A9046DEA8A21} - C:\Program Files\Microsoft Money\System\mnyviewer.dll
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O15 - Trusted Zone: www.mcafee.com
O15 - Trusted Zone: *.us.mcaf
O16 - DPF: {8AD9C840-044E-11D1-B3E9-00805F499D93} (Java Runtime Environment 1.6.0) - http://dl8-cdn-03.sun.com/s/ESD5/JSCDL/jdk/6u10/jinstall-6u10-windows-i586-jc.cab?e=1225573252564&h=b1085c25c2a910a35ca9a254a7f4331d/&filename=jinstall-6u10-windows-i586-jc.cab
O16 - DPF: {EF791A6B-FC12-4C68-99EF-FB9E207A39E6} (McFreeScan Class) - http://download.mcafee.com/molbin/iss-loc/mcfscan/2,1,0,4729/mcfscan.cab
O17 - HKLM\System\CS2\Services\Tcpip\Parameters: NameServer = 85.255.114.39 85.255.112.99
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG8\avgpp.dll
O20 - AppInit_DLLs: avgrsstx.dll
O23 - Service: AVG Free8 E-mail Scanner (avg8emc) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgemc.exe
O23 - Service: AVG Free8 WatchDog (avg8wd) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
O23 - Service: COM Host (comHost) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\VAScanner\comHost.exe
O23 - Service: Symantec IS Password Validation (ISPwdSvc) - Symantec Corporation - C:\PROGRA~1\Symantec\isPwdSvc.exe
O23 - Service: Java Quick Starter (JavaQuickStarterService) - Sun Microsystems, Inc. - C:\Program Files\Java\jre6\bin\jqs.exe
O23 - Service: Symantec Core LC - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
O23 - Service: WAN Miniport (ATW) Service (WANMiniportService) - America Online, Inc. - C:\WINDOWS\wanmpsvc.exe
 
--
End of file - 6206 bytes

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hijackthis.log

Here is the new HijackThis log after running malwarebytes.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 11:59:13 PM, on 11/1/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16735)
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\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Common Files\Symantec Shared\ccApp.exe
C:\Program Files\Java\jre6\bin\jusched.exe
C:\PROGRA~1\AVG\AVG8\avgtray.exe
C:\WINDOWS\system32\ctfmon.exe
C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
C:\Program Files\Java\jre6\bin\jqs.exe
C:\WINDOWS\wanmpsvc.exe
C:\PROGRA~1\AVG\AVG8\avgrsx.exe
C:\PROGRA~1\AVG\AVG8\avgemc.exe
C:\WINDOWS\system32\wuauclt.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe
C:\WINDOWS\system32\wuauclt.exe
 
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = 
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\Internet Explorer\Main,First Home Page = http://go.microsoft.com/fwlink/?LinkId=54843
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = 127.0.0.1
F2 - REG:system.ini: UserInit=C:\WINDOWS\system32\userinit.exe
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll
O2 - BHO: Java(tm) Plug-In SSV Helper - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre6\bin\ssv.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
O2 - BHO: (no name) - {FDD3B846-8D59-4ffb-8758-209B6AD74ACC} - C:\Program Files\Microsoft Money\System\mnyviewer.dll
O4 - HKLM\..\Run: [ccApp] C:\Program Files\Common Files\Symantec Shared\ccApp.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre6\bin\jusched.exe"
O4 - HKLM\..\Run: [AVG8_TRAY] C:\PROGRA~1\AVG\AVG8\avgtray.exe
O4 - HKCU\..\Run: [Akhm] C:\Program Files\Common Files\s?stem\e?plorer.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [Microsoft Works Update Detection] C:\Program Files\Microsoft Works\WkDetect.exe
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Control Panel present
O9 - Extra button: Real.com - {CD67F990-D8E9-11d2-98FE-00C0F0318AFE} - C:\WINDOWS\System32\Shdocvw.dll
O9 - Extra button: MoneySide - {E023F504-0C5A-4750-A1E7-A9046DEA8A21} - C:\Program Files\Microsoft Money\System\mnyviewer.dll
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O16 - DPF: {8AD9C840-044E-11D1-B3E9-00805F499D93} (Java Runtime Environment 1.6.0) - http://dl8-cdn-03.sun.com/s/ESD5/JSCDL/jdk/6u10/jinstall-6u10-windows-i586-jc.cab?e=1225573252564&h=b1085c25c2a910a35ca9a254a7f4331d/&filename=jinstall-6u10-windows-i586-jc.cab
O16 - DPF: {EF791A6B-FC12-4C68-99EF-FB9E207A39E6} (McFreeScan Class) - http://download.mcafee.com/molbin/iss-loc/mcfscan/2,1,0,4729/mcfscan.cab
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG8\avgpp.dll
O20 - AppInit_DLLs: avgrsstx.dll
O23 - Service: AVG Free8 E-mail Scanner (avg8emc) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgemc.exe
O23 - Service: AVG Free8 WatchDog (avg8wd) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
O23 - Service: COM Host (comHost) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\VAScanner\comHost.exe
O23 - Service: Symantec IS Password Validation (ISPwdSvc) - Symantec Corporation - C:\PROGRA~1\Symantec\isPwdSvc.exe
O23 - Service: Java Quick Starter (JavaQuickStarterService) - Sun Microsystems, Inc. - C:\Program Files\Java\jre6\bin\jqs.exe
O23 - Service: Symantec Core LC - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
O23 - Service: WAN Miniport (ATW) Service (WANMiniportService) - America Online, Inc. - C:\WINDOWS\wanmpsvc.exe
 
--
End of file - 5060 bytes

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hijackthis.log

Your log seems clean. I would suggest opening regedit to:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon
and changing the "UserInit" value to "C:\WINDOWS\system32\userinit.exe,"
Also, if you internet still doesn't work, I'm guessing it's something to do with AVG. Lately, I've seen a couple of problems where people can't access the internet and uninstalling AVG fixed it. There may also be some settings that you can play around with in AVG to get your internet working again or it just might be a bad update that they had.

Also, it seems like AVG at least has some good support. If you look at:
http://www.avg.com/support
you should see something like "Inactive components and/or blocked internet connection after update to 8.0.196" and if you click on it, it has some instructions.

I removed AVG and that did not fix it.  Any other suggestions?

You are still infected:

O4 - HKCU\..\Run: [Akhm] C:\Program Files\Common Files\s?stem\e?plorer.exe

is bad;

I suggest running Combofix:

http://www.bleepingcomputer.com/combofix/how-to-use-combofix

Please post the Combofix txt log, and a fresh HJT log.

Attached are the new reports.  I removed the e?plorer.exe through HijackThis.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 10:29:50 AM, on 11/2/2008
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16735)
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:\Program Files\Lavasoft\Ad-Aware\aawservice.exe
C:\Program Files\Java\jre6\bin\jusched.exe
C:\WINDOWS\system32\ctfmon.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Java\jre6\bin\jqs.exe
C:\WINDOWS\wanmpsvc.exe
C:\WINDOWS\system32\wscntfy.exe
C:\WINDOWS\system32\wuauclt.exe
C:\WINDOWS\explorer.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
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = 127.0.0.1
O2 - BHO: Java(tm) Plug-In SSV Helper - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre6\bin\ssv.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: [SunJavaUpdateSched] "C:\Program Files\Java\jre6\bin\jusched.exe"
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Control Panel present
O9 - Extra button: Real.com - {CD67F990-D8E9-11d2-98FE-00C0F0318AFE} - C:\WINDOWS\System32\Shdocvw.dll
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O16 - DPF: {8AD9C840-044E-11D1-B3E9-00805F499D93} (Java Runtime Environment 1.6.0) - http://dl8-cdn-03.sun.com/s/ESD5/JSCDL/jdk/6u10/jinstall-6u10-windows-i586-jc.cab?e=1225573252564&h=b1085c25c2a910a35ca9a254a7f4331d/&filename=jinstall-6u10-windows-i586-jc.cab
O23 - Service: Lavasoft Ad-Aware Service (aawservice) - Lavasoft - C:\Program Files\Lavasoft\Ad-Aware\aawservice.exe
O23 - Service: COM Host (comHost) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\VAScanner\comHost.exe
O23 - Service: Symantec IS Password Validation (ISPwdSvc) - Symantec Corporation - C:\PROGRA~1\Symantec\isPwdSvc.exe
O23 - Service: Java Quick Starter (JavaQuickStarterService) - Sun Microsystems, Inc. - C:\Program Files\Java\jre6\bin\jqs.exe
O23 - Service: WAN Miniport (ATW) Service (WANMiniportService) - America Online, Inc. - C:\WINDOWS\wanmpsvc.exe
 
--
End of file - 3195 bytes

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ComboFix.txt

Have you disabled startups in msconfig?  You appear to have no a/v software loading.
Please re-enable all msconfig startups and services and run HJT again.  Thanks.

Oh, I didn't see:
O4 - HKCU\..\Run: [Akhm] C:\Program Files\Common Files\s?stem\e?plorer.exe
! Did you check your event viewer?

Norton was causing an issue after I got the virus removed.  It didn't completly uninstall before and however all of its services were stopped.  After googling this issue, I noticed that others had this issue because of Norton.  I started the Norton services 1 by 1 and found that one causing the issue.  Everything now is back to normal.