here is the latest log.

[recovering space - attachment deleted by admin]Go Start>Run, type in:
services.msc
Click OK.
Services window will open.
Find Windows File Depictor and Rotator service.
Right click on it, click Stop.
Right click again, click Properties, and under Startup type set it to Disable
Exit services window.

Go Start>Run, type in:
regedit
Click OK.
Registry Editor will open.

Navigate to:
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\PROTOCOLS\Filter
Click on + sign next to Filter
You'll see sub-folders. One of them will be:
text/html
Right click on it, click Delete. Agree.

Open HJT. Click on Config, then Misc Tools, and then press the Delete an NT service.. button. When it opens enter Windows File Depictor and Rotator and press OK.

Restart computer. Post new HJT log.hjt file.

[recovering space - attachment deleted by admin]Very nice. All clean...

Download, and install CCLEANER: http://www.ccleaner.com/download/builds. Get "Slim" version.
Read CCleaner instruction here: http://www.jahewi.nl/ccleaner/ccleaner.html, and run CCleaner

Let me know, afterwards, how your computer is doing.thanks all set...one remaining issue. the background is still all white. it seems to be a left over from the red logo (adware advertising) that started this whole thing? any ideas?Did you TRY to change your background?yes i tried to change it, and it the changed background is there (underneath). I can see the correct background when i boot up, but then the whole background goes white. Download wphijack: http://files.iamnotageek.com/14/wphijack.zip
1. Unzip and save the file to your desktop.
2. Double-click wphijack.exe to run the program.
3. A window will appear reading "Wallpaper look like this?"
4. Click the Continue button.
5. Click Check for Hijack
6. Select all "REPAIR" buttons even though it may not say "Found!" This will fix a wallpaper hijack everytime if all repair buttons are pressed.did it. repaired all. nothing changed..Try XP Web\Wallpaper Defaults: http://www.kellys-korner-xp.com/xp_tweaks.htm (#339)that file is just a zip file with the original pdf's of the standard wallpaper. I unzipped that file for you. It lists all default Windows XP wallpapers:
Ascent.jpg
Autumn.jpg
Azul.jpg
Bliss.bmp
Crystal.jpg
Follow.jpg
Friend.jpg
Home.jpg
Moon flower.jpg
Peace.jpg
Power.jpg
Purple flower.jpg
Radiance.jpg
Red moon desert.jpg
Ripple.jpg
Stonehenge.jpg
Thumbs.db
Tulips.jpg
Vortec space.jpg
Wind.jpg
Windows XP.jpg

Open Windows Explorer, navigate to:
C:\WINDOWS\Web\Wallpaper
and compare your list with the above list.
Delete any unknown file.
Let me know, if you found any.
Restart computer.checked all files, they are all the same, rebooted, nothing. i did a ful scan with antispy and it found 45 adware cookies etc. i fixed them, but still assume that they will come back.Don't worry about tracking cookies. They'll be coming back. Nothing dangerous. You just need to clean them out, once in a while.
Now...
CREATE new profile, and see, if same problem exist. If not, MOVE your settings, and data from old profile to the new one, and delete old one.
Manual here: http://support.microsoft.com/kb/811151