Can someone please help me with my HJT log?

Hey, this is a log file off my mates computer. The reason that I am posting it for him, is that he is unable to log onto any web pages. It comes up with a message saying that there are viruises and spyware in the system, and gives false links to Spybot and Adware sites. Any help is much appreciated.
Thanks
 
Boot in Safe Mode.
Switch System restore OFF.
Press Ctrl/Alt/Del simultaneously, select Taskmanager/Processes, select the process (if there), click "End Process" for:

SMSSU.EXE
Tmntsrv32.EXE

Next, run a HJT scan and place a tick-mark in the little square before (if still there):
...................................................................................................
C:\WINDOWS\System32\SMSSU.EXE
C:\WINDOWS\System32\Tmntsrv32.EXE
C:\WINDOWS\System32\Tmntsrv32.EXE
C:\WINDOWS\System32\SMSSU.EXE
C:\WINDOWS\System32\Tmntsrv32.EXE
O2 - BHO: XMLDP Class - {60371670-81B9-4d06-9C42-4DEC1AABE62B} - C:\WINDOWS\xmllib.dll
O4 - HKCU\..\Run: [SMSSU] C:\WINDOWS\System32\SMSSU.EXE
O4 - HKCU\..\Run: [Tmntsrv32] C:\WINDOWS\System32\Tmntsrv32.EXE
...................................................................................................
Now click on the Fix Checked button in HJT.

When done, from between the dotted lines, delete the highlighted bold files.

Delete all files and directories from: C:\Documents and Settings\[username]\Local Settings\Temp
Repeat this for ALL [usernames].
Boot normal. When all OK, switch System Restore back on.
 
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