Very strange ... no internet(HTTP) but google talk is working ?

here is the log from hijackthis ....

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Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 17:27:05, on 11/07/2009
Platform: Windows Vista SP1 (WinNT 6.00.1905)
MSIE: Internet Explorer v7.00 (7.00.6001.18226)
Boot mode: Normal

Running processes:
C:\Windows\system32\taskeng.exe
C:\Windows\system32\Dwm.exe
C:\Windows\Explorer.EXE
C:\Windows\System32\mobsync.exe
C:\Program Files\Windows Defender\MSASCui.exe
C:\hp\support\hpsysdrv.exe
C:\Program Files\Hewlett-Packard\On-Screen OSD Indicator\OSD.exe
C:\Windows\System32\rundll32.exe
C:\Program Files\Java\jre1.6.0_01\bin\jusched.exe
C:\Program Files\HP\HP Software Update\hpwuSchd2.exe
C:\Program Files\Portrait Displays\HP My Display\dthtml.exe
C:\Program Files\AVG\AVG8\avgtray.exe
C:\Program Files\Windows Sidebar\sidebar.exe
C:\Users\Daniel\AppData\Roaming\Google\Google Talk\googletalk.exe
C:\Windows\ehome\ehtray.exe
C:\Program Files\Windows Media Player\wmpnscfg.exe
C:\Program Files\Common Files\Portrait Displays\Shared\HookManager.exe
C:\Windows\ehome\ehmsas.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\hp\kbd\kbd.exe
C:\Windows\system32\wuauclt.exe
C:\Program Files\Internet Explorer\ieuser.exe
C:\Program Files\Internet Explorer\iexplore.exe
c:\program files\aol\aol toolbar 5.0\AolTbServer.exe
C:\Windows\system32\Macromed\Flash\FlashUtil9f.exe
C:\Windows\system32\conime.exe
C:\Windows\system32\SearchFilterHost.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iehome&locale=en_ie&c=84&bd=Pavilion&pf=cndt
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iehome&locale=en_ie&c=84&bd=Pavilion&pf=cndt
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iehome&locale=en_ie&c=84&bd=Pavilion&pf=cndt
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://ie.redirect.hp.com/svs/rdr?TYPE=3&tp=iehome&locale=en_ie&c=84&bd=Pavilion&pf=cndt
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,SearchAssistant =
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,CustomizeSearch =
R0 - HKCU\Software\Microsoft\Internet Explorer\Toolbar,LinksFolderName =
O1 - Hosts: ::1 localhost
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelper.dll
O2 - BHO: WormRadar.com IESiteBlocker.NavFilter - {3CA2F312-6F6E-4B53-A66E-4E65E497C8C0} - C:\Program Files\AVG\AVG8\avgssie.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.6.0_01\bin\ssv.dll
O2 - BHO: AOL Toolbar BHO - {7C554162-8CB7-45A4-B8F4-8EA1C75885F9} - C:\Program Files\AOL\AOL Toolbar 5.0\aoltb.dll
O2 - BHO: AVG Security Toolbar - {A057A204-BACC-4D26-9990-79A187E2698E} - C:\PROGRA~1\AVG\AVG8\AVGTOO~1.DLL
O3 - Toolbar: AOL Toolbar - {DE9C389F-3316-41A7-809B-AA305ED9D922} - C:\Program Files\AOL\AOL Toolbar 5.0\aoltb.dll
O3 - Toolbar: AVG Security Toolbar - {A057A204-BACC-4D26-9990-79A187E2698E} - C:\PROGRA~1\AVG\AVG8\AVGTOO~1.DLL
O4 - HKLM\..\Run: [Windows Defender] %ProgramFiles%\Windows Defender\MSASCui.exe -hide
O4 - HKLM\..\Run: [hpsysdrv] c:\hp\support\hpsysdrv.exe
O4 - HKLM\..\Run: [KBD] C:\HP\KBD\KbdStub.EXE
O4 - HKLM\..\Run: [OsdMaestro] "C:\Program Files\Hewlett-Packard\On-Screen OSD Indicator\OSD.exe"
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\Windows\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [NvMediaCenter] RUNDLL32.EXE C:\Windows\system32\NvMcTray.dll,NvTaskbarInit
O4 - HKLM\..\Run: [HP Health Check Scheduler] c:\Program Files\Hewlett-Packard\HP Health Check\HPHC_Scheduler.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files\Java\jre1.6.0_01\bin\jusched.exe"
O4 - HKLM\..\Run: [HP Software Update] c:\Program Files\HP\HP Software Update\HPWuSchd2.exe
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files\Adobe\Reader 8.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [DT HPW] C:\Program Files\Portrait Displays\HP My Display\DTHtml.exe -startup_folder
O4 - HKLM\..\Run: [AVG8_TRAY] C:\PROGRA~1\AVG\AVG8\avgtray.exe
O4 - HKCU\..\Run: [Sidebar] C:\Program Files\Windows Sidebar\sidebar.exe /autoRun
O4 - HKCU\..\Run: [googletalk] C:\Users\Daniel\AppData\Roaming\Google\Google Talk\googletalk.exe /autostart
O4 - HKCU\..\Run: [ehTray.exe] C:\Windows\ehome\ehTray.exe
O4 - HKCU\..\Run: [WMPNSCFG] C:\Program Files\Windows Media Player\WMPNSCFG.exe
O4 - HKUS\S-1-5-19\..\Run: [Sidebar] %ProgramFiles%\Windows Sidebar\Sidebar.exe /detectMem (User '?')
O4 - HKUS\S-1-5-19\..\Run: [WindowsWelcomeCenter] rundll32.exe oobefldr.dll,ShowWelcomeCenter (User '?')
O4 - HKUS\S-1-5-20\..\Run: [Sidebar] %ProgramFiles%\Windows Sidebar\Sidebar.exe /detectMem (User '?')
O4 - HKUS\S-1-5-21-3333165847-647126726-799296486-1000\..\Run: [Sidebar] C:\Program Files\Windows Sidebar\sidebar.exe /autoRun (User '?')
O8 - Extra context menu item: &AOL Toolbar Search - C:\ProgramData\AOL\ieToolbar\resources\en-IE\local\search.html
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_01\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_01\bin\ssv.dll
O13 - Gopher Prefix:
O18 - Protocol: linkscanner - {F274614C-63F8-47D5-A4D1-FBDDE494F8D1} - C:\Program Files\AVG\AVG8\avgpp.dll
O20 - AppInit_DLLs: avgrsstx.dll
O23 - Service: Automatic LiveUpdate Scheduler - Symantec Corporation - c:\Program Files\Symantec\LiveUpdate\AluSchedulerSvc.exe
O23 - Service: AVG Free8 E-mail Scanner (avg8emc) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgemc.exe
O23 - Service: AVG Free8 WatchDog (avg8wd) - AVG Technologies CZ, s.r.o. - C:\PROGRA~1\AVG\AVG8\avgwdsvc.exe
O23 - Service: Portrait Displays Display Tune Service (DTSRVC) - Unknown owner - C:\Program Files\Common Files\Portrait Displays\Shared\dtsrvc.exe
O23 - Service: GameConsoleService - WildTangent, Inc. - C:\Program Files\HP Games\My HP Game Console\GameConsoleService.exe
O23 - Service: HP Health Check Service - Hewlett-Packard - c:\Program Files\Hewlett-Packard\HP Health Check\hphc_service.exe
O23 - Service: LightScribeService Direct Disc Labeling Service (LightScribeService) - Hewlett-Packard Company - c:\Program Files\Common Files\LightScribe\LSSrvc.exe
O23 - Service: LiveUpdate - Symantec Corporation - c:\Program Files\Symantec\LiveUpdate\LuComServer_3_4.EXE
O23 - Service: NVIDIA Display Driver Service (nvsvc) - NVIDIA Corporation - C:\Windows\system32\nvvsvc.exe

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End of file - 7057 bytes

OK so im away from the machine now, I think the best solution is to send them the Ubunto CD ....

That should remove virus problems ...