Issue resolved
This is a nasty trojan, embeds itself in the registry and deleting it from the registry is the only way to get rid of it with backup of a rootkit killer. Ran Micro's Malisious software removal tool, only deleted it partially and said I needed to finish the job manually, so not knowing how I called Microsoft (free tech support) She found the sucker and deleted it. Wow,nasty nasty virus. Thanks guys for all your suggestions.
That is why you should post the OTS log so Essexboy can see if everything is removed....