Disable the system restore function in windows and the problem will be solved. Hint: search this forum before asking. This question has been answered in other threads many times before.
Yes disable it permantly. Not only to solve this error. Look at it this way. You get a virus, Avast removes it. You reboot. System restore places some old files back and you are infected again. That’s not something you want. System restore is also taking up a lot of diskspace and is hardly used by anyone. The XP recovery console offers a lot of posibillyties to repair a damaged os. And you also have the in-place-repair (as explained here http://support.microsoft.com/default.aspx?scid=kb;EN-US;315341) option to restore a damaged os if needed.
a) if you disabled RESTORE properly and didn’t reenable it, then it’s imho impossible that the files are still there, cause all restore points/files should be gone then … ???
Did you REBOOT after disabling restore ? did you disable it as Administrator ?
If I’m wrong there, then try deleting the file in SafeMode or via the console modus from the WINXP-CD (“DOS”)
b) if you disabled it properly with reboot, but reenabled it after this, and THEN a scan showed it again, this means it’s still somewhere else on the system or continuously reinfecting you
(Unsecure IE, WIN not patched etc etc…)
What gives a complete thorough scan with uptodate avast ?
please also read the existing topics on trojan-gen, and follow the advice there (Onlinescanners, Ad-aware, spybot etc…)
As to leave it there:
if it’s ONLY found in RESTORE, you can leave it there, IF you remember NEVER to make a system restore
without the aid of additional info/scanners, one can’t say what it did; as trojan-gen is a rather unhelpful name for all kinds of trojans, it imho could be anything from rather harmless adware to Malware-Downloader to fully-fledged BackDoor/Remote Access Tool
if above b) is right, then some remnants could still be lurking on your PC ;)you should check this then