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Update to above post -- Anti-Malware full scan reported 3 more malwares.
uninstalled OneCare and reinstalled AVG8 free -- when MS release OneCare for free I'll start using it!

If anybody cares,...

My son's PC had this problem.



Here's how I fixed it



Uninstalled AVG8, Installed trial of Windows OneCare and ran scan -- found 3 malwares
downloaded HiJackThis 2.0.2 onto USB stick...