I've reviewed your logs and looks like it was successful cleaning your PC, however, that is very damaging worm.
You need to be aware that it may have stolen information or compromised your system!. Trend-Micro calls this Gaobot.df and it had a write up on it.
Here is a description:
Gaobot.DF
http://www.trendmicro.com/vinfo/virusencyclo/default5.asp?VName=WORM_GAOBOT.DF&VSect=T
Backdoor Capabilities
Using a random port, this worm connects to the Internet Relay Chat (IRC) server and joins a specific channel, where it listens for the following commands from a remote malicious user:
Download files from a specified URL
Find, delete, rename or execute files
Flush DNS buffer
Get clipboard data
Get network information
Get system information
Initiate a denial of service (DoS) attack
List or delete network shares
List or terminate processes
Logs keystrokes
Perform IRC commands
Redirect connections
Execute commands using a remote shell
Scan for vulnerabilities
Send email messages
Sniff incoming or outgoing packets
Start an FTP, HTTP, or TFTP server
Steal CD keys
Steal passwords
Visit specified URL
It executes these commands locally on an affected system, providing the remote user virtual control over the machine.
There is more in that link I gave you.
You were likely infected because you are not up to date on critical security updates from windows and you are vulnerable to future attacks as well.
You really need to get SP2 and ALL critical security updates from Microsoft
http://update.microsoft.com/microsoftupdate/
Some final Clean up steps
Go to Start > Run and type in the box:
cleanmgr
This will run the Windows disk cleanup utility. Wait while it scans your system and then it will present a list of files/folders to to delete. Make sure these 3 are checkmarked and press *ok* to delete them:
Temporary Files
Temporary Internet Files
Recycle bin
Next: Please reset your system restore in Windows XP
Now that your PC is clean, make sure all programs are running properly and then you'll need to reset your restore point in Windows XP.......why?
One of the best features of Windows ME or XP is the System Restore option, however if a malware infects a computer with this operating system it can be backed up in the System Restore folder. Therefore, clearing the restore points is necessary after malware removal.
To reset your restore points, please note that you will need to log into your computer with an account which has full administrator access. You will know if the account has administrator access because you will be able to see the System Restore tab. If the tab is missing, you are logged in under a limited account.
(winXP)
1. Turn off System Restore.
Go to Start > Run, click on *My Computer*.
Click Properties.
Click the System Restore tab.
Check Turn off System Restore.
Click Apply, and then click OK.
2. Reboot.
3. Turn ON System Restore.
Go to Start > Run, click on *My Computer*.
Click Properties.
Click the System Restore tab.
UN-Check *Turn off System Restore*.
Click Apply, and then click OK.
How to Turn On and Turn Off System Restore in Windows XP
http://support.microsoft.com/default.aspx?scid=kb;en-us;310405
Let me know if you are seeing any remaining problems. You may want to consider a reformat/reinstall as an option if you are able to save your important data and have the original disks to reinstall (but get SP2 first and save it to CD or other removable media) so that you can install SP2 before connecting to the internet after reinstall.
Also be aware of the dangers of using P2P programs. Tashi has written up some very good info here:
File Sharing, otherwise known as Peer To Peer. (P2P)
http://forums.spybot.info/showthread.php?t=282
I hope that is all a help to you.
