I did back everything up, but strangely after restarting Spybot 2 things happened.

1. The box stopped popping up and everything seems to be in order BUT
2. The resident log is still not up-to-date...still only showing up to the 29th of last month.

I am going to do a full virus scan with norton and then do a full problem check with Spybot and see what happens. If nothing shows up then for now I gues the problem is settled.