i haven't viewed your logs yet completely, but the reason you can't run some installed programs like AVG or malwarebytes is that the Security settings have been changed by the infection. You need to enable the 'security' tab to change the security settings for some .exe files to allow them to run correctly.
Enabling the security tab in Safe Mode with xp home edition, pro edition, or Media Center edition:
1. Boot to Safe Mode (Press F8 multiple times on bootup prior to the windows logo appearing)
2. Up arrow to SAFE MODE and press Enter.
3. When Userinit.exe loads (logon screen) left click on Administrator.
4. When the desktop loads, left click on the START Menu.
5. Left click on 'My Computer'
6. Left click on the 'Tools' menu.
7. Left click on 'Folder Options'
8. Left click on the 'View' Tab.
9. Left click and drag the slider to scroll down to the bottom of the options.
10. Uncheck 'Use Simple File Sharing' and click the OK button.
At this point, you'll be able to see a new TAB in the Properties window of any folder or program you view.
You need to add 'System' to all of the programs that aren't running and you need to change the security setting for 'System'. 'System' has security settings like all users to allow Windows to open & run system programs. When the virus removed 'System' from the 'Security' of some programs, it disabled your ability to run those programs.
To enable the 'Security' account to have access to run programs you need to change each program that has been disabled. Note: Reinstalling AVG or Malwarebytes as described by a previous user may help as well. However, this will help you enable the programs to run if you don't re-install them.
For MRT (microsot Removal Tool)
Note: MRT is a microsoft tool that can help clean & remove some viruses. I suggest that you run it. The next few steps to help enable MRT.EXE can also be applied to SpybotSD.exe or mbam.exe (malwarebytes).
1. Left click on the Start Menu.
2. Left click on My Computer.
3. Double Left click on the C:\ drive.
4. Dbl left click on Windows.
(spybot resides in C:\Program Files\Spybot - Search & Destroy\spybotsd.exe)
(malwarebytes resides in C:\Program Files\Malwarebytes' Anti-Malware\mbam.exe)
5. Dbl left click on System32
6. Scroll down until you find MRT.EXE.
7. Right click on MRT.EXE and left click on Properties.
8. Left click on the 'Security' tab.
9. If 'SYSTEM' is in the list of 'Group or User Names', then you'll need to add it.
Note: If 'System' is in the list, then you can click the 'Cancel' button and stop following the next few steps - double left click on MRT to run it and scan your pc. 'System' should have 'Full Control' checked though. If not, follow the next steps to add or change it's Rights.
10. Left click on the ADD button.
11. Left click the Advanced button.
12. Left click the Find Now button.
13. Scroll down and single left click on 'System' (make it highlighted).
14. Left click the OK button.
15. Left click the Full Control check box.
16. Left click the OK button.
The program MRT.EXE is now set to run correctly. The same steps should be done for Mbam.exe and Spybotsd.exe.
Post the Logs if the programs run correctly.
Note: If you're able to get the system cleaned from enabling the scanner programs to run correctly, you should set or check the 'Use Simple File Sharing' check box back to the ON position.
Please post your results.
Hope that helps.
Zyldar.