Warning! Potential Spyware Operation!

I get the follow Fake Windows Secutiry alert every 5 minutes:

Warning! Potential Spyware Operation!

Your computer is making unauthorized copies of your system and Internet files. Run full scan now to pervent any unathorixed access to your files! Click YES to download spyware remover...

I have not clicked on the YES or NO button.

I read through some of the problems simular and they all ask for "Logfile of Trend Micro HijackThis v2.0.2" so I attached it. I have also backed up my registry with ERUNT.

Could you please provide me with a solution to this?

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 07:05:19 PM, on 2007/09/21
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.5730.0011)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\ZoneLabs\vsmon.exe
C:\WINDOWS\Explorer.exe
C:\Program Files\Common Files\Symantec Shared\ccSvcHst.exe
C:\Program Files\Common Files\Symantec Shared\AppCore\AppSvc32.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
C:\WINDOWS\System32\inetsrv\inetinfo.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\mdm.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\Program Files\CyberLink\Shared files\RichVideo.exe
C:\WINDOWS\System32\tcpsvcs.exe
C:\WINDOWS\system32\slserv.exe
C:\WINDOWS\System32\snmp.exe
C:\Program Files\Alcohol Soft\Alcohol 120\StarWind\StarWindService.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\System32\mqsvc.exe
C:\WINDOWS\System32\mqtgsvc.exe
C:\WINDOWS\system32\printer.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\WINDOWS\SOUNDMAN.EXE
C:\Program Files\Common Files\Symantec Shared\ccApp.exe
C:\Program Files\CyberLink\PowerDVD\PDVDServ.exe
C:\Program Files\Zone Labs\ZoneAlarm\zlclient.exe
C:\Program Files\Messenger\msmsgs.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Free Download Manager\fdm.exe
C:\Program Files\Common Files\InstallShield\UpdateService\ISUSPM.exe
C:\ScanPanel\ScnPanel.exe
G:\PhoneConnectorVMC.exe
G:\vmc.exe
C:\Program Files\Mozilla Firefox\firefox.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
F2 - REG:system.ini: Shell=Explorer.exe C:\WINDOWS\system32\printer.exe
O3 - Toolbar: Show Norton Toolbar - {90222687-F593-4738-B738-FBEE9C7B26DF} - C:\Program Files\Common Files\Symantec Shared\coShared\Browser\1.0\UIBHO.dll
O3 - Toolbar: Megaupload Toolbar - {4E7BD74F-2B8D-469E-CCB0-B130EEDBE97C} - C:\PROGRA~1\MEGAUP~1\MEGAUP~1.DLL
O4 - HKLM\..\Run: [MsmqIntCert] regsvr32 /s mqrt.dll
O4 - HKLM\..\Run: [SoundMan] SOUNDMAN.EXE
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [nwiz] nwiz.exe /install
O4 - HKLM\..\Run: [NeroFilterCheck] C:\WINDOWS\system32\NeroCheck.exe
O4 - HKLM\..\Run: [ccApp] "C:\Program Files\Common Files\Symantec Shared\ccApp.exe"
O4 - HKLM\..\Run: [osCheck] "C:\Program Files\Norton Internet Security\osCheck.exe"
O4 - HKLM\..\Run: [RemoteControl] "C:\Program Files\CyberLink\PowerDVD\PDVDServ.exe"
O4 - HKLM\..\Run: [LanguageShortcut] "C:\Program Files\CyberLink\PowerDVD\Language\Language.exe"
O4 - HKLM\..\Run: [Symantec PIF AlertEng] "C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\PIFSvc.exe" /a /m "C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\AlertEng.dll"
O4 - HKLM\..\Run: [Zone Labs Client] "C:\Program Files\Zone Labs\ZoneAlarm\zlclient.exe"
O4 - HKLM\..\Run: [Resume copy] copyfstq.exe /startup
O4 - HKLM\..\Run: [NvMediaCenter] RUNDLL32.EXE C:\WINDOWS\system32\NvMcTray.dll,NvTaskbarInit
O4 - HKLM\..\Run: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [Free Download Manager] C:\Program Files\Free Download Manager\fdm.exe -autorun
O4 - HKCU\..\Run: [ISUSPM] "C:\Program Files\Common Files\InstallShield\UpdateService\ISUSPM.exe" -scheduler
O4 - HKCU\..\Run: [MobileConnect.EXE] C:\Program Files\Vodafone\Vodafone Mobile Connect\Bin\MobileConnect.EXE
O4 - HKCU\..\Run: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe
O4 - Startup: system.exe
O4 - Global Startup: autorun.exe
O4 - Global Startup: ScanPanel.lnk = C:\ScanPanel\ScnPanel.exe
O7 - HKLM\Software\Microsoft\Windows\CurrentVersion\Policies\System, DisableRegedit=1
O8 - Extra context menu item: Download all with Free Download Manager - file://C:\Program Files\Free Download Manager\dlall.htm
O8 - Extra context menu item: Download selected with Free Download Manager - file://C:\Program Files\Free Download Manager\dlselected.htm
O8 - Extra context menu item: Download with Free Download Manager - file://C:\Program Files\Free Download Manager\dllink.htm
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\Office12\EXCEL.EXE/3000
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\Office12\REFIEBAR.DLL
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - http://fpdownload2.macromedia.com/ge...sh/swflash.cab
O17 - HKLM\System\CCS\Services\Tcpip\..\{9A0DE187-28A1-4370-99B8-FFCD0A60B2BA}: NameServer = 196.207.32.69 196.43.1.11
O20 - AppInit_DLLs: systems.txt
O22 - SharedTaskScheduler: COM+ Service - {3C49DDAC-3DA4-4743-AF6C-5974FEAF875C} - C:\WINDOWS\system32\winload.dll
O23 - Service: Ad-Aware 2007 Service (aawservice) - Lavasoft AB - C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
O23 - Service: Adobe LM Service - Adobe Systems - C:\Program Files\Common Files\Adobe Systems Shared\Service\Adobelmsvc.exe
O23 - Service: Automatic LiveUpdate Scheduler - Symantec Corporation - C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
O23 - Service: Symantec Event Manager (ccEvtMgr) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\ccSvcHst.exe
O23 - Service: Symantec Settings Manager (ccSetMgr) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\ccSvcHst.exe
O23 - Service: Symantec Lic NetConnect service (CLTNetCnService) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\ccSvcHst.exe
O23 - Service: COM Host (comHost) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\VAScanner\comHost.exe
O23 - Service: Symantec IS Password Validation (ISPwdSvc) - Symantec Corporation - C:\Program Files\Norton Internet Security\isPwdSvc.exe
O23 - Service: LiveUpdate - Symantec Corporation - C:\PROGRA~1\Symantec\LIVEUP~1\LUCOMS~1.EXE
O23 - Service: LiveUpdate Notice Service Ex (LiveUpdate Notice Ex) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\ccSvcHst.exe
O23 - Service: LiveUpdate Notice Service - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\PIFSvc.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: Cyberlink RichVideo Service(CRVS) (RichVideo) - Unknown owner - C:\Program Files\CyberLink\Shared files\RichVideo.exe
O23 - Service: SmartLinkService (SLService) - Smart Link - C:\WINDOWS\SYSTEM32\slserv.exe
O23 - Service: StarWind iSCSI Service (StarWindService) - Rocket Division Software - C:\Program Files\Alcohol Soft\Alcohol 120\StarWind\StarWindService.exe
O23 - Service: Symantec Core LC - Unknown owner - C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
O23 - Service: Symantec AppCore Service (SymAppCore) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\AppCore\AppSvc32.exe
O23 - Service: TrueVector Internet Monitor (vsmon) - Zone Labs, LLC - C:\WINDOWS\system32\ZoneLabs\vsmon.exe

--
End of file - 7949 bytes

Sorry about adding this in a new post but I haven't figured how to edit my existing posts yet. 2 more symptoms I have found are:

My Control Panel is gone
Norton Internet Security Phishing option is disabled and I can't get it re-enabled again. It keeps complaining about some internal error.