Please follow these steps to reset your IE:
To use RIES in Internet Explorer 7, follow these steps:
1. Click the Tools menu, and then click Internet Options.
2. On the Advanced tab, click Reset.
3. In the Reset Internet Explorer Settings dialog box, click Reset.
4. When Internet Explorer 7 finishes restoring the default settings, click Close, and then click OK two times.
5. Close Internet Explorer 7. The changes take effect the next time that you open Internet Explorer 7.
Note If you cannot start Internet Explorer 7 for some reason, use RIES from Internet Options in Control Panel.
A status report would be great when this has been completed.
Oh by the way when looking at the hijackthis! log I did not see anything that concerned me in a serious way.
Regards.