Getting a lot of Event ID: 1058 followed by Event ID: 1030 in event log

I have an SBS 2003 server getting the following two events every couple of hours.

Recently this server was hacked by a SPAMMER. After changing the Administrator password and cleaning up exchange I see these events in the logs every day.

It is a very simple setup with a single server and a few PC's.

I found the following forum http://www.petri.co.il/forums/showthread.php?t=24870. It suggested using ADSIedit to remove the GP. However, I get access denied when I try to delet the object "CN={31B2F340-016D-11D2-945F-00C04FB984F9}"

Any suggestions on how to resolve this would be greatly appreciated.

 Source: Userenv
 Category: (0)
 Event ID: 1058
 User (If Applicable): BAIC\Administrator
 Computer: BAICSERVER
 Event Description: Windows cannot access the file gpt.ini for GPO CN={31B2F340-016D-11D2-945F-00C04FB984F9},CN=Policies,CN=System,DC=BAIC,DC=local. The file must be present at the location <\\BAIC.local\sysvol\BAIC.local\Policies\{31B2F340-016D-11D2-945F-00C04FB984F9}\gpt.ini>. (Logon failure: unknown user name or bad password. ). Group Policy processing aborted.
 Event Log Name: Application
 Event Log Type: error
 Event Log Date Time: 2012-07-04 06:55:45


 Source: Userenv
 Category: (0)
 Event ID: 1030
 User (If Applicable): BAIC\Administrator
 Computer: BAICSERVER
 Event Description: Windows cannot query for the list of Group Policy objects. Check the event log for possible messages previously logged by the policy engine that describes the reason for this.
 Event Log Name: Application
 Event Log Type: error
 Event Log Date Time: 2012-07-04 06:55:45

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