User reported a hijack of the OS and a 3rd part app offering virus removal.
Upon running Spybot, CCleaner and Regmechanic I discovered the "Artemis" virus on his laptop.
There was a suspicious entry in the startup when I ran MSconfig so I removed that and it allowed me to run the resident AV.
Once it had quarantined the virus I was able to reboot and tidy up.
IE wasn't connecting to the internet but this was simply a blank proxy entry in the IE.
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Let me know if this helped.
I'd really appreciate any comments (well, only nice ones) so please feel free to let me know what you think of the blog and also ask for further help...