Finally tried it again in normal Windows mode (not safe mode) and got it to work. Here's the log file:
ComboFix 12-07-31.06 - Jerry 08/03/2012 19:43:48.2.1 - x86
Microsoft Windows XP Professional 5.1.2600.2.1252.1.1033.18.1023.709 [GMT -4:00]
Running from: c:\documents and settings\Jerry\Desktop\ComboFix.exe
AV: AVG Anti-Virus Free Edition 2012 *Disabled/Updated* {17DDD097-36FF-435F-9E1B-52D74245D6BF}
* Created a new restore point
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((((((((((((((((((((((((((((((((((((((( Other Deletions )))))))))))))))))))))))))))))))))))))))))))))))))
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c:\windows\5.tmp
c:\windows\dasetup.log
c:\windows\system32\dllcache\wmpvis.dll
c:\windows\system32\msssc.dll
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((((((((((((((((((((((((( Files Created from 2012-07-03 to 2012-08-03 )))))))))))))))))))))))))))))))
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2012-07-26 00:45 . 2012-07-26 00:45 -------- d-----w- c:\documents and settings\Jerry\Application Data\Malwarebytes
2012-07-26 00:45 . 2012-07-26 00:45 -------- d-----w- c:\documents and settings\All Users\Application Data\Malwarebytes
2012-07-26 00:45 . 2012-07-26 00:45 -------- d-----w- c:\program files\Malwarebytes' Anti-Malware
2012-07-26 00:45 . 2012-07-03 17:46 22344 ----a-w- c:\windows\system32\drivers\mbam.sys
2012-07-10 03:54 . 2012-07-10 03:54 -------- d-----w- c:\program files\MSECache
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(((((((((((((((((((((((((((((((((((((((( Find3M Report ))))))))))))))))))))))))))))))))))))))))))))))))))))
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2012-06-17 12:29 . 2012-05-18 13:05 426184 ----a-w- c:\windows\system32\FlashPlayerApp.exe
2012-06-17 12:29 . 2011-12-26 22:32 70344 ----a-w- c:\windows\system32\FlashPlayerCPLApp.cpl
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((((((((((((((((((((((((((((((((((((( Reg Loading Points ))))))))))))))))))))))))))))))))))))))))))))))))))
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*Note* empty entries & legit default entries are not shown
REGEDIT4
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[HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Run]
"swg"="c:\program files\Google\GoogleToolbarNotifier\GoogleToolbarNotifier.exe" [2010-01-30 39408]
"ATI Scheduler"="c:\program files\ATI Multimedia\main\ATISched.EXE" [2003-05-14 36942]
"ATI Launchpad"="c:\program files\ATI Multimedia\main\LaunchPd.exe" [2003-05-14 106574]
"SUPERAntiSpyware"="c:\program files\SUPERAntiSpyware\SUPERAntiSpyware.exe" [2012-06-24 3905408]
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[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Run]
"IgfxTray"="c:\windows\System32\igfxtray.exe" [2003-03-11 155648]
"HotKeysCmds"="c:\windows\System32\hkcmd.exe" [2003-03-11 114688]
"Smapp"="c:\program files\Analog Devices\SoundMAX\SMTray.exe" [2003-05-05 143360]
"ATIPTA"="c:\program files\ATI Technologies\ATI Control Panel\atiptaxx.exe" [2003-04-29 323584]
"AVG_TRAY"="c:\program files\AVG\AVG2012\avgtray.exe" [2012-04-05 2587008]
"Adobe ARM"="c:\program files\Common Files\Adobe\ARM\1.0\AdobeARM.exe" [2012-01-03 843712]
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[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\RunOnce]
"AvgUninstallURL"="start
http://www.avg.com/w...0&ver=10.0.1325" [?]
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[hkey_local_machine\software\microsoft\windows\currentversion\explorer\ShellExecuteHooks]
"{5AE067D3-9AFB-48E0-853A-EBB7F4A000DA}"= "c:\program files\SUPERAntiSpyware\SASSEH.DLL" [2011-07-19 113024]
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[HKEY_LOCAL_MACHINE\software\microsoft\windows nt\currentversion\winlogon\notify\!SASWinLogon]
2011-05-04 17:54 551296 ----a-w- c:\program files\SUPERAntiSpyware\SASWINLO.DLL
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[HKEY_LOCAL_MACHINE\system\currentcontrolset\control\session manager]
BootExecute REG_MULTI_SZ autocheck autochk *\0c:\progra~1\AVG\AVG2012\avgrsx.exe /sync /restart
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[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\SafeBoot\Minimal\!SASCORE]
@=""
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[HKLM\~\services\sharedaccess\parameters\firewallpolicy\standardprofile\AuthorizedApplications\List]
"%windir%\\system32\\sessmgr.exe"=
"c:\\Program Files\\AVG\\AVG2012\\avgmfapx.exe"=
"c:\\Program Files\\AVG\\AVG2012\\avgnsx.exe"=
"c:\\Program Files\\AVG\\AVG2012\\avgdiagex.exe"=
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[HKLM\~\services\sharedaccess\parameters\firewallpolicy\standardprofile\GloballyOpenPorts\List]
"3389:TCP"= 3389:TCP:@xpsp2res.dll,-22009
"5900:TCP"= 5900:TCP:VNC
"5800:TCP"= 5800:TCP:VNC HTTP
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R0 AVGIDSHX;AVGIDSHX;c:\windows\system32\drivers\avgidshx.sys [4/19/2012 4:50 AM 24896]
R0 Avgrkx86;AVG Anti-Rootkit Driver;c:\windows\system32\drivers\avgrkx86.sys [1/19/2011 4:32 AM 31952]
R1 Avgldx86;AVG AVI Loader Driver;c:\windows\system32\drivers\avgldx86.sys [1/7/2011 6:41 AM 235216]
R1 Avgtdix;AVG TDI Driver;c:\windows\system32\drivers\avgtdix.sys [2/10/2011 7:54 AM 301248]
R1 SASDIFSV;SASDIFSV;c:\program files\SUPERAntiSpyware\sasdifsv.sys [7/22/2011 12:27 PM 12880]
R1 SASKUTIL;SASKUTIL;c:\program files\SUPERAntiSpyware\SASKUTIL.SYS [7/12/2011 5:55 PM 67664]
R2 !SASCORE;SAS Core Service;c:\program files\SUPERAntiSpyware\SASCore.exe [8/11/2011 7:38 PM 116608]
R2 avgwd;AVG WatchDog;c:\program files\AVG\AVG2012\avgwdsvc.exe [2/14/2012 4:53 AM 193288]
R3 AVGIDSDriver;AVGIDSDriver;c:\windows\system32\drivers\avgidsdriverx.sys [12/23/2011 1:32 PM 139856]
R3 AVGIDSFilter;AVGIDSFilter;c:\windows\system32\drivers\avgidsfilterx.sys [12/23/2011 1:32 PM 24144]
R3 AVGIDSShim;AVGIDSShim;c:\windows\system32\drivers\avgidsshimx.sys [12/23/2011 1:32 PM 17232]
S2 AVGIDSAgent;AVGIDSAgent;c:\program files\AVG\AVG2012\avgidsagent.exe [7/4/2012 5:25 PM 5160568]
S2 gupdate;Google Update Service (gupdate);c:\program files\Google\Update\GoogleUpdate.exe [1/30/2010 12:56 AM 135664]
S3 gupdatem;Google Update Service (gupdatem);c:\program files\Google\Update\GoogleUpdate.exe [1/30/2010 12:56 AM 135664]
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Contents of the 'Scheduled Tasks' folder
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2012-08-03 c:\windows\Tasks\GoogleUpdateTaskMachineCore.job
- c:\program files\Google\Update\GoogleUpdate.exe [2010-01-30 04:56]
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2012-08-03 c:\windows\Tasks\GoogleUpdateTaskMachineUA.job
- c:\program files\Google\Update\GoogleUpdate.exe [2010-01-30 04:56]
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2012-07-27 c:\windows\Tasks\restart.job
- C:\restart.bat [2010-02-07 18:05]
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------- Supplementary Scan -------
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uStart Page = about:blank
uInternet Connection Wizard,ShellNext = wmplayer.exe //ICWLaunch
TCP: DhcpNameServer = 192.168.10.1
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**************************************************************************
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catchme 0.3.1398 W2K/XP/Vista - rootkit/stealth malware detector by Gmer,
http://www.gmer.net
Rootkit scan 2012-08-03 19:50
Windows 5.1.2600 Service Pack 2 NTFS
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scanning hidden processes ...
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scanning hidden autostart entries ...
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scanning hidden files ...
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scan completed successfully
hidden files: 0
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**************************************************************************
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--------------------- DLLs Loaded Under Running Processes ---------------------
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- - - - - - - > 'winlogon.exe'(896)
c:\program files\SUPERAntiSpyware\SASWINLO.DLL
c:\windows\system32\WININET.dll
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Completion time: 2012-08-03 19:52:19
ComboFix-quarantined-files.txt 2012-08-03 23:52
ComboFix2.txt 2012-07-28 15:38
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Pre-Run: 31,580,348,416 bytes free
Post-Run: 32,078,589,952 bytes free
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- - End Of File - - 93431BF061085CA37136F89FE4672DF2