The MalwareBytes log:

Malwarebytes' Anti-Malware 1.33
Database version: 1675
Windows 5.1.2600 Service Pack 3

1/21/2009 4:19:11 PM
mbam-log-2009-01-21 (16-19-11).txt

Scan type: Full Scan (C:\|)
Objects scanned: 112949
Time elapsed: 32 minute(s), 46 second(s)

Memory Processes Infected: 0
Memory Modules Infected: 0
Registry Keys Infected: 10
Registry Values Infected: 1
Registry Data Items Infected: 0
Folders Infected: 0
Files Infected: 8

Memory Processes Infected:
(No malicious items detected)

Memory Modules Infected:
(No malicious items detected)

Registry Keys Infected:
HKEY_CLASSES_ROOT\popcaploader.popcaploaderctrl2 (Adware.PopCap) -> Quarantined and deleted successfully.
HKEY_CLASSES_ROOT\popcaploader.popcaploaderctrl2.1 (Adware.PopCap) -> Quarantined and deleted successfully.
HKEY_CLASSES_ROOT\Interface\{abcdecef-4b15-11d1-abed-709549c10000} (Trojan.FakeAlert) -> Quarantined and deleted successfully.
HKEY_CLASSES_ROOT\Interface\{e4e3e0f8-cd30-4380-8ce9-b96904bdefca} (Adware.PopCap) -> Quarantined and deleted successfully.
HKEY_CLASSES_ROOT\Interface\{fe8a736f-4124-4d9c-b4b1-3b12381efabe} (Adware.PopCap) -> Quarantined and deleted successfully.
HKEY_CLASSES_ROOT\Typelib\{c9c5deaf-0a1f-4660-8279-9edfad6fefe1} (Adware.PopCap) -> Quarantined and deleted successfully.
HKEY_CLASSES_ROOT\Typelib\{abcdece2-4b15-11d1-abed-709549c10000} (Trojan.FakeAlert) -> Quarantined and deleted successfully.
HKEY_CLASSES_ROOT\webmedia.chl (Trojan.Zlob) -> Quarantined and deleted successfully.
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Uninstall\IExplorer add-on (Trojan.Zlob) -> Quarantined and deleted successfully.
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Multimedia\WMPlayer\Schemes\f3pss (Adware.MyWebSearch) -> Quarantined and deleted successfully.

Registry Values Infected:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\SharedDLLs\C:\WINDOWS\Downloaded Program Files\popcaploader.dll (Adware.PopCap) -> Quarantined and deleted successfully.

Registry Data Items Infected:
(No malicious items detected)

Folders Infected:
(No malicious items detected)

Files Infected:
C:\WINDOWS\Downloaded Program Files\popcaploader.dll (Adware.PopCap) -> Quarantined and deleted successfully.
C:\System Volume Information\_restore{202550A8-7A33-4BCA-9586-051D24DDBF8F}\RP296\A0063411.exe (Rogue.Installer) -> Quarantined and deleted successfully.
C:\Pass2.cmd (Trojan.Agent) -> Quarantined and deleted successfully.
C:\WINDOWS\inf\ultra.PNF (Malware.Trace) -> Quarantined and deleted successfully.
C:\Documents and Settings\Karen Lindberg\Favorites\Run Virus Scan.url (Trojan.Zlob) -> Quarantined and deleted successfully.
C:\Documents and Settings\All Users\Start Menu\Programs\Accessories\System Tools\Run Virus Scan.url (Trojan.Zlob) -> Quarantined and deleted successfully.
C:\Documents and Settings\Karen Lindberg\Start Menu\VirusResponse Lab 2009 2.1.lnk (Rogue.AntiVirusLab) -> Quarantined and deleted successfully.
C:\Documents and Settings\Karen Lindberg\Application Data\Microsoft\Internet Explorer\Quick Launch\VirusResponse Lab 2009 2.1.lnk (Rogue.AntiVirusLab) -> Quarantined and deleted successfully.