sorry this took so long, I have been very busy lately, still having same problem after following your instructions, im starting to wondering if it could be an irq conflict somewhere seeing how it only happens when I am connected to the internet, but that wouldn't explain why it only occurs most of the time but not always.

Logfile of HijackThis v1.99.1
Scan saved at 3:59:48 PM, on 2/10/2006
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)

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:\WINDOWS\system32\spoolsv.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe
C:\WINDOWS\System32\tcpsvcs.exe
C:\WINDOWS\System32\snmp.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\System32\spool\drivers\w32x86\3\hpztsb0 9.exe
C:\Program Files\Hewlett-Packard\HP Software Update\HPWuSchd.exe
C:\Program Files\HP\hpcoretech\hpcmpmgr.exe
C:\Program Files\Hewlett-Packard\Digital Imaging\bin\hpotdd01.exe
C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe
C:\Program Files\Common Files\Microsoft Shared\Works Shared\WkUFind.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgemc.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe
C:\Program Files\Microsoft AntiSpyware\gcasDtServ.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\HijackThis\HijackThis.exe

F2 - REG:system.ini: UserInit=C:\WINDOWS\system32\Userinit.exe
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: UberButton Class - {5BAB4B5B-68BC-4B02-94D6-2FC0DE4A7897} - C:\Program Files\Yahoo!\Common\yiesrvc.dll
O2 - BHO: YahooTaggedBM Class - {65D886A2-7CA7-479B-BB95-14D1EFB7946A} - C:\Program Files\Yahoo!\Common\YIeTagBm.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O3 - Toolbar: RefresherBand Class - {B24BA06E-FB7B-4757-95C2-DC01125F750E} - C:\PROGRA~1\YREFRE~1\YREFRE~1.DLL
O4 - HKLM\..\Run: [HPDJ Taskbar Utility] C:\WINDOWS\System32\spool\drivers\w32x86\3\hpztsb0 9.exe
O4 - HKLM\..\Run: [HP Software Update] "C:\Program Files\Hewlett-Packard\HP Software Update\HPWuSchd.exe"
O4 - HKLM\..\Run: [HP Component Manager] "C:\Program Files\HP\hpcoretech\hpcmpmgr.exe"
O4 - HKLM\..\Run: [DeviceDiscovery] C:\Program Files\Hewlett-Packard\Digital Imaging\bin\hpotdd01.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] C:\Program Files\Java\jre1.5.0_06\bin\jusched.exe
O4 - HKLM\..\Run: [KernelFaultCheck] %systemroot%\system32\dumprep 0 -k
O4 - HKLM\..\Run: [Microsoft Works Update Detection] C:\Program Files\Common Files\Microsoft Shared\Works Shared\WkUFind.exe
O4 - HKLM\..\Run: [gcasServ] "C:\Program Files\Microsoft AntiSpyware\gcasServ.exe"
O4 - HKLM\..\Run: [AVG7_EMC] C:\PROGRA~1\Grisoft\AVGFRE~1\avgemc.exe
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe /STARTUP
O4 - Startup: MyWebSearch Email Plugin.lnk = ?
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O8 - Extra context menu item: &Yahoo! Search - file:///C:\Program Files\Yahoo!\Common/ycsrch.htm
O8 - Extra context menu item: Yahoo! &Dictionary - file:///C:\Program Files\Yahoo!\Common/ycdict.htm
O8 - Extra context menu item: Yahoo! &Maps - file:///C:\Program Files\Yahoo!\Common/ycmap.htm
O8 - Extra context menu item: Yahoo! &SMS - file:///C:\Program Files\Yahoo!\Common/ycsms.htm
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\npjpi150_06.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\npjpi150_06.dll
O9 - Extra button: Yahoo! Services - {5BAB4B5B-68BC-4B02-94D6-2FC0DE4A7897} - C:\Program Files\Yahoo!\Common\yiesrvc.dll
O9 - Extra button: AIM - {AC9E2541-2814-11d5-BC6D-00B0D0A1DE45} - C:\Program Files\AIM\aim.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O12 - Plugin for .mov: C:\Program Files\Internet Explorer\PLUGINS\npqtplugin.dll
O16 - DPF: {2B323CD9-50E3-11D3-9466-00A0C9700498} (Yahoo! Audio Conferencing) - http://jcs.chat.dcn.yahoo.com/v45/yacscom.cab
O16 - DPF: {30528230-99f7-4bb4-88d8-fa1d4f56a2ab} (YInstStarter Class) - C:\Program Files\Yahoo!\Common\yinsthelper.dll
O16 - DPF: {49232000-16E4-426C-A231-62846947304B} - http://ipgweb.cce.hp.com/rdqcpc/downloads/sysinfo.cab
O17 - HKLM\System\CCS\Services\Tcpip\..\{8910B7F3-E57C-4DE3-90BD-6E90D90B0F61}: NameServer = 216.226.19.11 216.226.19.12
O23 - Service: AVG7 Alert Manager Server (Avg7Alrt) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
O23 - Service: AVG7 Update Service (Avg7UpdSvc) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe