Sometimes just fixing the entries with HijackThis! is not enough: more sophisticated malware can come back, especially 020 and 023 enties. (And you will need to delete the malware service as described here:

http://www.bleepingcomputer.com/tutorials/tutorial42.html#O23Diag)

Please post a new log so we can see if the entries have really gone.

I'm living in one of those 'third world' countries where getting a copy of windows SP2 is pretty hard. So... you know the rest ^^.

No worries. If you can’t update to SP2, make sure you use an alternative browser like Firefox or Opera, which will be a lot more secure than IE6 under SP1.

Don’t forget to update Java because the version you are using will allow drive-by infection by spyware.

EDIT: I recommend you keep the firewall. You can disable AVG real-time protection until the trial runs out, when it will be on-demand only, as David said. All the other programs are an-demand only, so don’t take up resources.

Keep updating and scanning with AVG anti-spyware and the other scanners, because you have some new variants of malware, and these will be added to the definitions over the next few days or weeks: you will probably find future scans find malware traces if not actual running malware processes- as I mentioned above, I don’t think fixing these entries with HijackThis! will have dealt with the malware.