here is the mbam LOG. I have been running this daily and have not found anything since the first running.

Malwarebytes' Anti-Malware 1.46
www.malwarebytes.org

Database version: 4734

Windows 5.1.2600 Service Pack 3
Internet Explorer 6.0.2900.5512

10/2/2010 10:42:34 PM
mbam-log-2010-10-02 (22-42-34).txt

Scan type: Quick scan
Objects scanned: 198178
Time elapsed: 10 minute(s), 3 second(s)

Memory Processes Infected: 0
Memory Modules Infected: 0
Registry Keys Infected: 0
Registry Values Infected: 0
Registry Data Items Infected: 0
Folders Infected: 0
Files Infected: 0

Memory Processes Infected:
(No malicious items detected)

Memory Modules Infected:
(No malicious items detected)

Registry Keys Infected:
(No malicious items detected)

Registry Values Infected:
(No malicious items detected)

Registry Data Items Infected:
(No malicious items detected)

Folders Infected:
(No malicious items detected)

Files Infected:
(No malicious items detected)
Edited. What browser are you using to download Adobe updates?I have tried both internet explorer and firefox. They both will download and start to install reader than it fails towards the end stating that I don't have the rights. FLASH player appears to install correctly but every website I go to states that it is not installed.

Error 1402 could not open key.
hkey_local_machine\software\microsoft\windows\currentversion\run\optionalcomponents\imail.
verify that you have sufficient access to that key.Edited.Ignore the above postYou could try creating a new user account and see if it works OK. If so then transfer over DOCUMENTS and settings then delete the OLD account. Perhaps it would be best to start a new thread in the software forum. I'm quite sure it's not malware related.
Virus and mallware are creating big problem for a new computer users. I am not new user but i don't have enough idea about virus. How to enter the virus in our system. What it do with our system.

If some one guide me about virus. It is my pleasure

Thanks in advance.thanks Dave. I will try to do this. If it does not work I will create a post in software. Again thank you for all your help.