a major infection of smitfraud? (and who knows what else!)

somehow i picked up a really bad infection(s)...it's making my computer hard to use. it's changing settings,deleting things, constantly trying to make registry changes. getting drwatsons and other windows.as well as the smitfraud c antivirus warning. Thanks for helping!

Logfile of HijackThis v1.99.1
Scan saved at 08:20:06, on 9/28/2008
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP3 (6.00.2900.5512)

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\Intel\Wireless\Bin\EvtEng.exe
C:\Program Files\Intel\Wireless\Bin\S24EvMon.exe
C:\Program Files\Intel\Wireless\Bin\ZcfgSvc.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
C:\WINDOWS\system32\svchost.exe
C:\PROGRA~1\Intel\Wireless\Bin\1XConfig.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\AGRSMMSG.exe
C:\Program Files\Panasonic\HotKey Appendix\HKEYAPP.EXE
C:\Program Files\Intel\Wireless\Bin\ifrmewrk.exe
C:\Program Files\Java\jre1.6.0_07\bin\jusched.exe
C:\WINDOWS\system32\lphc74sj0e34c.exe
C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
C:\WINDOWS\system32\wlansta.exe
C:\WINDOWS\system32\wscntfy.exe
C:\Program Files\Netscape\Netscape\Netscp.exe
C:\WINDOWS\TEMP\stf10.tmp
C:\Program Files\Twain\Twain.exe
C:\Documents and Settings\Administrator\Application Data\Microsoft\Windows\qiwxws.exe
C:\Documents and Settings\Administrator\Application Data\SpeedRunner\SpeedRunner.exe
C:\Program Files\HijackThis\HijackThis.exe

R3 - URLSearchHook: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - (no file)
F2 - REG:system.ini: UserInit=C:\WINDOWS\system32\userinit.exe,C:\WINDOWS\system32\ntos.exe,
N3 - Netscape 7: user_pref("browser.startup.homepage", ""); (C:\Documents and Settings\Administrator\Application Data\Mozilla\Profiles\default\l0hnf070.slt\prefs.js)
N3 - Netscape 7: user_pref("browser.search.defaultengine", "engine://C%3A%5CProgram%20Files%5CNetscape%5CNetscape%5Csearchplugins%5CSBWeb_01.src"); (C:\Documents and Settings\Administrator\Application Data\Mozilla\Profiles\default\l0hnf070.slt\prefs.js)
O4 - HKLM\..\Run: [PRunOnce] C:\util\prunonce\PRunOnce.exe
O4 - HKLM\..\Run: [AGRSMMSG] AGRSMMSG.exe
O4 - HKLM\..\Run: [Panasonic HotKey Manager] "C:\Program Files\Panasonic\HotKey Appendix\HKEYAPP.EXE"
O4 - HKLM\..\Run: [PCinfo] C:\Program Files\Panasonic\PCINFO\SetDiag.exe /FirstLogin
O4 - HKLM\..\Run: [IntelWireless] C:\Program Files\Intel\Wireless\Bin\ifrmewrk.exe /tf Intel PROSet/Wireless
O4 - HKLM\..\Run: [NeroFilterCheck] C:\WINDOWS\system32\NeroCheck.exe
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files\Adobe\Reader 8.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre1.6.0_07\bin\jusched.exe"
O4 - HKLM\..\Run: [lphc74sj0e34c] C:\WINDOWS\system32\lphc74sj0e34c.exe
O4 - HKCU\..\Run: [Ponheg] "C:\Documents and Settings\Administrator\My Documents\?icrosoft\w?crtupd.exe"
O4 - HKCU\..\Run: [SpybotSD TeaTimer] C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
O4 - Global Startup: WLAN network adaptor Wireless LAN Configuration.lnk = ?
O16 - DPF: {466FE5FE-9B04-4BD8-9993-C4FBDAEB7122} (JMWiseCam Control) - http://192.168.1.199/JMWiseCam.cab
O16 - DPF: {9732FB42-C321-11D1-836F-00A0C993F125} (mhLabel Class) - http://pcpitstop.com/mhLbl.cab
O21 - SSODL: WPDShServiceObj - {AAA288BA-9A4C-45B0-95D7-94D524869DB5} - C:\WINDOWS\system32\WPDShServiceObj.dll
O23 - Service: AVG Anti-Spyware Guard - GRISOFT s.r.o. - C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
O23 - Service: Cryptographic Services CryptSvcSwPrv (CryptSvcSwPrv) - Unknown owner - C:\WINDOWS\system32\3.tmp.exe (file missing)
O23 - Service: EvtEng - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\EvtEng.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\1150\Intel 32\IDriverT.exe
O23 - Service: RegSrvc - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
O23 - Service: Spectrum24 Event Monitor (S24EventMonitor) - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\S24EvMon.exe
O23 - Service: MS Software Shadow Copy Provider SwPrvWebClient (SwPrvWebClient) - Unknown owner - C:\WINDOWS\system32\60ws.exe

Hello and welcome to Malware Removal.

My name is km2357 and I will be helping you to remove any infection(s) that you may have.

I will be giving you a series of instructions that need to be followed in the order in which I give them to you.

If for any reason you do not understand an instruction or are just unsure then please do not guess, simply post back with your questions/concerns and we will go through it again.

Please do not start another thread or topic, I will assist you at this thread until we solve your problems.

Lastly the fix may take several attempts and my replies may take some time but I will stick with it if you do the same.

I will be back as soon as possible with your first instructions!

I'm afraid I have unpleasant news for you. You have a Very Dangerous infection on this machine.

The infection is delivered by Infostealer.Banker.C

It allows outsiders COMPLETE access to every keystroke, account, and password you use while on this machine, and complete access to any other data present...
IF this computer has been used for any kind of important data, my best recommendation is to Disconnect from Internet, Re-Format the entire drive and re-install your Operating system and Applications.

We can likely clean the infected files off the computer, and if you wish we will attempt to do so, but we cannot be sure that the infection didn't do something to your system to reduce the system security. In that instance, even after removal of the infection, you could be subject to another attack or takeover as soon as you re-connect to the Internet.

The Decision Whether to ReFormat or Not should be based on:

• The use of the computer - this is the primary factor in the decision whether to re-format and re-install, or just disinfect.

If the Computer has been used for any important data, you are strongly advised to do the following, immediately:

• Disconnect the infected computer from the internet and from any networked computers until the computer can be cleaned.
• Back up all important data on the machine. Do not back up any Applications (programs). Those should be re-installed from the original source CDs or websites.
• If you have ever used this computer for shopping, banking, or any transactions relating to your financial well being:
  Call all of your banks, credit card companies, and financial institutions, informing them that you may be a victim of identity theft, and to put a watch on your accounts or change all your account numbers.
• From a clean computer, change ALL your online passwords -- for ISP login, email, banks, financial accounts, PayPal, eBay, online companies, and any online forums or groups you belong to.
• DO NOT change passwords or do any transactions while using the infected computer because the attacker will get the new password and transaction information.
• Take any other steps you think appropriate for an attempted identity theft.

While you are deciding whether to ReFormat and Re-Install, a useful link is here: http://www.dslreports.com/faq/10063
Please let me know what you decide.

rtv? Have you reached a decision yet?

lack of response,