HJT log looks clean.
Verify your
Java version here:
Verify Java Version
Update, if necessary.
Uninstall all previous Java versions, through Add\Remove.
Since the computer was infected....
1. Turn off System Restore:
-
Windows XP:
1. Click Start.
2. Right-click the My Computer icon, and then click Properties.
3. Click the System Restore tab.
4. Check "Turn off System Restore".
5. Click Apply.
6. When turning off System Restore, the existing restore points will be deleted. Click Yes to do this.
7. Click OK.
-
Windows Vista:
1. Click Start.
2. Right-click the Computer icon, and then click Properties.
3. Click on System Protection under the Tasks column on the left side
4. Click on Continue on the "User Account Control" window that pops up
5. Under the System Protection tab, find Available Disks
6. Uncheck the box for any drive you wish to disable system restore on (in most cases, drive "C:")
7. When turning off System Restore, the existing restore points will be deleted. Click "Turn System Restore Off" on the popup window to do this.
8. Click OK
2. Restart computer.
3. Turn System Restore on.
The computer is now clean of garbage, and malwares, so you should be OK with installing SP3.