It was actually TDL4 in the MBR - did Avast alert you to this ? - Ahh no I see you are using V5 and not V6
Go to Control Panel and select Internet Options
Select the Connections TAB
Select LAN settings button
Ensure there is no tick in the Proxy Server box
Select OK and restart Internet explorer
And for Firefox there are instructions on this page and you want the setting to be no proxy
Whitesmoke can be a right pig to get rid of despite the authors claims that it is a good programme