It’s infected.
ZA detects and alerts a lot of outbound attempts… most of them won’t be related to that trojan.
Anyway, you should be clean of it.
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Enable/Disable System restore on Windows ME or Windows XP. System Restore cannot be disabled on Windows 9x and it’s not available in Windows 2k.
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Clean your temporary files. You can use the Windows Advanced Care features for that.
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Schedule a boot time scanning with avast. Start avast! > Right click the skin > Schedule a boot-time scanning. Select for scanning archives. Boot. Other option is scanning in SafeMode (repeatedly press F8 while booting).
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It will be good if you download, install, update and run other trojan remover tools: a-squared, Free AVG Antispyware or SUPERantispyware (trojan removers). Some users recommend Spyware Terminator.
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Use the immunization of [url=SpywareBlaster or, which is better, the Windows Advanced Care features of spyware/adware cleaning and removal.