Hijack virus

I'm almost afraid to comment because I know nothing, but when I had a virus like that, I tried everything you did. Unsuccessfully.
What I ended up doing was to use smitfraudfix. Success! It was scary but I just followed the instructions. I was able to view the instructions on my phone while I did it so that helped.

I have to admit I didn't read the whole thread, just skimmed, because most of it was over my head.

One last thing....

If after running ComboFix you're still being redirected or cannot access certain websites, then you'll have to view your hostfile to make sure it's clean.

Once you get to that point, I (or someone else on these forums) can show you how to view and clear your host file.

You have a rootkit problem.

Get rid of it by installing/running a program called ComboFix.

Download it from bleepingcomputer.com or from majorgeeks (http://majorgeeks.com/Combofix_d6402.html)

· Run it (grant administrator access if using vista or windows 7).

· Let it do it's thing (it may restart your PC once or twice to get rid of rootkit activity)

Once it's done, simply click start, run and type "combofix /uninstall" without the quotes to uninstall it from your system.

Once done, go ahead and do a FULL scan of your PC with malwarebytes anti-malware.

First do what Hubby said and copy all irreplaceable data onto a USB storage device.  I do not recommend the smaller ones that are powered by the USB port - I urge people shopping for an external drive to get one that plugs into the wall like a Western Digital MyBook.  Do this now.

Malwarebytes should have taken care of the active malware file mainly responsible for this.  AVG and SpyBot would be useless on an already installed malware "infection".  HiJackThis this won't be much help unless you know what the list means and which entries might be problems.  And it also won't remove the malware.

So with data backed up, you have nothing to lose, right?  You could now do a Windows reinstall which is also called System Recovery if you have recovery disks or a recovery partition on your computer's drive.  But you seem game to try to lick this so let's smack it around a bit. 

Your immediate problem is a certain malware file that Windows is told to run when started normally.  This malware file was probably randomly named and placed into a hidden folder in your User Account.  You were unknowingly tricked into installing this on your own computer.  In Windows XP, this hidden haystack is in the Local Settings directory which is hidden (C:\Documents and Settings\"logon name*).  In Vista and 7, it is placed inside the C:\Users\*logon name*\AppData or C:\ProgramData directories.  You'll have to unhide hidden and protected system folders to see these directories.

Since you have clicked around on the tray balloon and the fake scanner and this malware program took you to planet Vega and back (heh), you might also have a rootkit which could effect your web search results.  The good news is that apparently you can get online from Safe Mode which tells me that your Proxy settings and hosts file are probably OK.  Also good news is this particular malware install apparently let MalwareBytes phone home to its update server.

I mentioned earlier that I was surprised MalwareBytes didn't remove the active malware, so let's try this manually.  If you are in Safe Mode, click Start and type in msconfig" (no quotes).  If Vista or 7, msconfig.exe will appear at the top of the search list.  Click it.  Once System Config Utility opens, click the Startup tab.  This is a list of things that Windows is told to automatically start when started in normal mode.  If your computer has never been messed with by anyone with marginal tech skills, you might have quite a list with each entry having a checkmark in front of it.  Things with checks get automatically loaded at startup, no check means the item doesn't get loaded at startup.

In this list, what you want to look for is the active malware file or files.  There may be more than one.  Carefully look at each line and drag the Command Column out to the right so you can see the full path.  You are looking for a path that ends with a randomly generated file name that ends in .exe.  Again, here are examples of the first parts of suspect paths:

C:\Users\*username*\AppData\Local\ in Vista and 7 and also in 7, the file may be in C:\ProgramData

or in XP...  C:\Documents and Settings\"logon name*\LocalSettings or C:\Documents and Settings\"logon name*\LocalSettings\Application Data

Since some malware infections name their files AVG.exe, look for that one too.

If you see anything in System Configuration Utility's list that resemble any of these command lines UNcheck it.  Don't worry about unchecking something important - this can be undone by going back in that same way.  At this point, I go to the file that the path shows and delete it, but I know exactly what to look for.  We don't want to delete something you actually need so for now, unchecking it (stopping it from starting) serves your purpose.

With suspected command paths of the malware unchecked, restart in normal mode.  If you picked the correct items from the msconfig list, the popups are not happening and you can now run MalwareBytes and any other .exe.  Start MalwareBytes, do the update, then run a "Quick Scan".  After it's finished click "Get Results" and click "Remove Selected".  It may prompt for a reboot and when Vista or 7 reboots, you have to give permission for MalwareBytes to run and finish the cleanup - look for the prompt in the lower-right task bar.

Next download HitMan Pro free version from SurfRite.  Run it, let it update, hit Next, choose the "one-time scan". When it's done scanning, look at the list to see if there's anything besides tracking cookies.  If there's anything in red like a rootkit, choose Next.  On the activation page there will be a text link to do a one-time free activation.  Click that and allow it to clean the rootkit and reboot if asked.  Again - Vista or 7 will ask for startup permission.

Optimistically, your machine is now clean.  Go into Add/Remove and uninstall all security products.  AVG, AdAware, SpyBot, Norton (Symantec), McAfee, all of it.  You can really crap up a system overloading it with this stuff which is pretty much useless against modern threats (as was shown by your experience).  I recommend using only one AV product and then being informed about pop-ups which when clicking OK on teh wrong one, will cause malware files to be installed.  My preferred AV is Panda Cloud and I train customers to close all script-generated pop-ups using Task Manager.

Firstly - welcome! We'll do our best to help

Secondly, although it's probably a bit like telling someone to wear their seatbelt AFTER they run into a telephone pole, if your wife has precious pictures YOU MUST BACK THEM UP! How you back them up is a whole nother post as it can get complicated, so let's take this as a learning experience regarding the importance of backing up important stuff.

THIRD - keep in mind that not everyone can fix these things themselves and it might be worth plopping down $75 at the local geek-store if those photos are really that precious. To put it another way, suppose I came to a auto-repair forum for beginners and said: "My transmission is broke. I can get it into reverse, but that's about it. Please walk me through how to fix it. and keep in mind that I have only basic tools, but i dont really know how to use them" .. See what i mean?

Ok.. enough bloviating.. let's get started... it MIGHT turn out to be not all that complicated..

You have two options: 1) "clean" the bad stuff off and go about your business or if that fails 2) extract all your important stuff, wipe the whole thing clean, and start over

let's go for option #1 because it is usually faster and easier.. #2, the last resort will get ugly..

I would start by downloading and running a program called Malwarebytes. You can download it for free here: MalwareBytes.com .. Be careful to click the blue download button right below where it says "download location", and not one of the advertisements that may also say "download" .. Be sure to read all of the instructions on how to install and use/run the program here: How to use Malwarebytes. It's not very complicated, and it's spelled out very well - just a lot to read.
Chances are that Malwarebytes will take care of it all for you.. If so, come back and post your thanks.. if not, then things may get complicated - come back and post what happens, we'll need some other additional information, and we'll go from there.