Data Execution Prevention: IE8 and windows update will not run

I am working on a laptop and a desktop that are both having the same issues that started at the same time. These are both XP sp3 machines.

They both will not open IE or software update due to a DEP error. When I try to open IE I get a window that says "Data Execution Error" and the app fails to launch.

Firefox and Chrome run fine.

I have done a boot scan with Avast, run malwarebytes, spybot, Ccleaner, etc and they do not find anything wrong.

I used the advanced settings tab to reset IE to it factory settings and nothing. It will not open in add-ons off mode... I even re-installed IE8 and same issue.

The one thing that does pop up is a script blocker message from Avast when I first try to launch IE.
jpcoonAsked:
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jpcoonAuthor Commented:
used hijack to remove all entries related to datamanager datamgr or searchqu in safe mode

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jpcoonAuthor Commented:
Now it looks like it is a malware installed under the name 'searchqu' when the user added Bandoo... still can't seem to get rid of it.

Did a system restore to a previous pre-install date and now safe booting to try malwarebytes full scan.
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