Newbie wth unwanted pop-up problems on 2 computers

[WHSKY8]

I have 2 Computers that are infected with Pop-ups and who knows what else. This log is from my wife's computer. She never had this problem before, it wasn't until she upgraded to IE7 from IE6 that she started getting the pop-ups, please help. Placing both the HJT and Kasperkey log reports from her computer in this post is too long, I haven't started any scans on my computer, I am trying to get hers fix first before I tackle mine. I will await for your instructions.

Thanks in advance
WHSKY8