Problem with hidden directory

Hi there,

OK, so I tried to update windows XP to SP2 and it bombed. Windows would not boot properly after the update completed. I figured that I might have some spyware or virus that made it bomb so after I did a system restore, I installed Avast and did some cleaning.
I noticed that Avast scanned a directory on my C: drive called Recycler. This directory is nowhere to be found in explorer however, I was wondering if this might be a spyware program or something.
I have Windows XP pro edition on service pack 1. I ran Hijack this and I’m not sure what to get rid of and what to keep, here is the log file;

Logfile of HijackThis v1.98.2
Scan saved at 10:38:54 PM, on 10/28/2004
Platform: Windows XP SP1 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP1 (6.00.2800.1106)

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\System32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Alwil Software\Avast4\aswUpdSv.exe
C:\Program Files\Alwil Software\Avast4\ashServ.exe
C:\WINDOWS\Explorer.EXE
C:\WINDOWS\System32\msvcmm32.exe
C:\Program Files\Movielink\MovielinkManager\Movielink Manager.exe
C:\Program Files\Java\j2re1.4.2_05\bin\jusched.exe
C:\Program Files\ATI Technologies\ATI Control Panel\atiptaxx.exe
C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
C:\PROGRA~1\ALWILS~1\Avast4\ashmaisv.exe
C:\WINDOWS\System32\ctfmon.exe
C:\WINDOWS\System32\dllhost.exe
C:\WINDOWS\System32\msdtc.exe
C:\HJT\HijackThis.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.yahoo.com/
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Window Title = Tim’s World Wide Web
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = 127.0.0.1
R3 - Default URLSearchHook is missing
O2 - BHO: SpywareGuard Download Protection - {4A368E80-174F-4872-96B5-0B27DDD11DB2} - C:\Program Files\SpywareGuard\dlprotect.dll
O3 - Toolbar: &Radio - {8E718888-423F-11D2-876E-00A0C9082467} - C:\WINDOWS\System32\msdxm.ocx
O3 - Toolbar: (no name) - {26B97F3B-C7FF-C668-5C36-C4F92AD9F460} - (no file)
O4 - HKLM..\Run: [LoadMSvcmm] C:\WINDOWS\System32\msvcmm32.exe
O4 - HKLM..\Run: [ATIPTA] C:\Program Files\ATI Technologies\ATI Control Panel\atiptaxx.exe
O4 - HKLM..\Run: [avast!] C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
O4 - HKLM..\Run: [ashMaiSv] C:\PROGRA~1\ALWILS~1\Avast4\ashmaisv.exe
O4 - HKLM..\Run: [MSConfig] C:\WINDOWS\PCHealth\HelpCtr\Binaries\MSConfig.exe /auto
O4 - HKCU..\Run: [ctfmon.exe] C:\WINDOWS\System32\ctfmon.exe
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Control Panel present
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\Office10\EXCEL.EXE/3000
O8 - Extra context menu item: LimeShop Preferences - file://C:\Program Files\LimeShop\System\Temp\limeshop_script0.htm
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\WINDOWS\System32\msjava.dll
O9 - Extra ‘Tools’ menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\WINDOWS\System32\msjava.dll
O9 - Extra button: Control Pad - {28D44DAD-D1FC-4d4f-BB1B-ADF037C8DDBC} - C:\Program Files\Verizon Online\Verizon Online Control Pad\VerizonControlPad.Exe
O9 - Extra ‘Tools’ menuitem: Control Pad - {28D44DAD-D1FC-4d4f-BB1B-ADF037C8DDBC} - C:\Program Files\Verizon Online\Verizon Online Control Pad\VerizonControlPad.Exe
O9 - Extra button: AIM - {AC9E2541-2814-11d5-BC6D-00B0D0A1DE45} - C:\Program Files\AIM\aim.exe
O9 - Extra button: AdsGone - {ECC5777A-6E88-BFCE-13CE-81F134789E7B} - C:\Program Files\AdsGone\adsgone (file missing)
O9 - Extra ‘Tools’ menuitem: &AdsGone Settings - {ECC5777A-6E88-BFCE-13CE-81F134789E7B} - C:\Program Files\AdsGone\adsgone (file missing)
O12 - Plugin for .spop: C:\Program Files\Internet Explorer\Plugins\NPDocBox.dll
O13 - WWW. Prefix: http://
O16 - DPF: Yahoo! Dominoes - http://download.games.yahoo.com/games/clients/y/dot7_x.cab
O16 - DPF: Yahoo! Poker - http://download.games.yahoo.com/games/clients/y/pt1_x.cab
O16 - DPF: {2CAB81F6-1CBB-49FD-809E-B2D37D0CFFED} - http://www.popmonster.com/control/src/iefeatures.ocx
O16 - DPF: {39B0684F-D7BF-4743-B050-FDC3F48F7E3B} (FilePlanet Download Control Class) - http://dev-www.fileplanet.com/fpdlmgr/cabs/FPDC_1_0_0_37.cab
O16 - DPF: {74D05D43-3236-11D4-BDCD-00C04F9A3B61} (HouseCall Control) - http://a840.g.akamai.net/7/840/537/2004061001/housecall.trendmicro.com/housecall/xscan53.cab
O16 - DPF: {B3872502-F9FD-4E96-93FF-0D37298F0689} (SOESysInfo Control) - http://swgbetareg.station.sony.com/soesysinfo.cab
O16 - DPF: {D8089245-3211-40F6-819B-9E5E92CD61A2} (FlashXControl Object) - https://register3.valueactive.com/mpp_398/webolr/OCX/FlashAX.cab
O16 - DPF: {EB387D2F-E27B-4D36-979E-847D1036C65D} (QDiagHUpdateObj Class) - http://h30043.www3.hp.com/hpdj/en/check/qdiagh.cab?322
O16 - DPF: {EF791A6B-FC12-4C68-99EF-FB9E207A39E6} (McFreeScan Class) - http://download.mcafee.com/molbin/iss-loc/vso/en-us/tools/mcfscan/2,0,0,4388/mcfscan.cab

Thanks alot for any help you can give!! ;D

This directory is nowhere to be found in explorer however, I was wondering if this might be a spyware program or something.
Yes it is. But you must enable show hidden/system files (folders) first.

And to analyze your log, use my HijackThis Log analyzer as well as the online analyzer. Both can be found if you click on the link in my signature.