Took your advice and downloaded spybot and ran it. Found that I now have DSO Exploit and it does not simply remove w/ spybot or spysweeper.
My log file is the following:

Logfile of HijackThis v1.98.1
Scan saved at 5:28:06 PM, on 8/1/2004
Platform: Windows XP SP1 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP1 (6.00.2800.1106)

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\spoolsv.exe
C:\WINDOWS\Explorer.EXE
C:\PROGRA~1\Grisoft\AVG7\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVG7\avgupsvc.exe
C:\Program Files\Common Files\Microsoft Shared\VS7Debug\mdm.exe
C:\WINDOWS\System32\snmp.exe
C:\WINDOWS\System32\svchost.exe
C:\PROGRA~1\Grisoft\AVG7\avgcc.exe
C:\Program Files\Hewlett-Packard\HP Share-to-Web\hpgs2wnd.exe
C:\PROGRA~1\Grisoft\AVG7\avgemc.exe
C:\Program Files\Ahead\InCD\InCD.exe
C:\Program Files\Webroot\Spy Sweeper\SpySweeper.exe
C:\WINDOWS\System32\ctfmon.exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\Hewlett-Packard\HP Share-to-Web\hpgs2wnf.exe
C:\Program Files\Hewlett-Packard\Digital Imaging\bin\hpobnz08.exe
C:\Program Files\BigFix\BigFix.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Documents and Settings\diane bauknight\Local Settings\Temp\Temporary Directory 2 for hijackthis.zip\HijackThis.exe

R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Int ernet Settings,ProxyServer = 12.34.246.5:80
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 5.0\Reader\ActiveX\AcroIEHelper.ocx
O2 - BHO: (no name) - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar1.dll
O3 - Toolbar: &Radio - {8E718888-423F-11D2-876E-00A0C9082467} - C:\WINDOWS\System32\msdxm.ocx
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar1.dll
O4 - HKLM\..\Run: [AVG7_CC] C:\PROGRA~1\Grisoft\AVG7\avgcc.exe /STARTUP
O4 - HKLM\..\Run: [Share-to-Web Namespace Daemon] C:\Program Files\Hewlett-Packard\HP Share-to-Web\hpgs2wnd.exe
O4 - HKLM\..\Run: [RecoverFromReboot] C:\WINDOWS\Temp\RecoverFromReboot.exe
O4 - HKLM\..\Run: [AVG7_EMC] C:\PROGRA~1\Grisoft\AVG7\avgemc.exe
O4 - HKLM\..\Run: [NeroCheck] C:\WINDOWS\system32\NeroCheck.exe
O4 - HKLM\..\Run: [InCD] C:\Program Files\Ahead\InCD\InCD.exe
O4 - HKCU\..\Run: [SpySweeper] C:\Program Files\Webroot\Spy Sweeper\SpySweeper.exe /0
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\System32\ctfmon.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - Global Startup: hp psc 2000 Series.lnk = C:\Program Files\Hewlett-Packard\Digital Imaging\bin\hpobnz08.exe
O4 - Global Startup: BigFix.lnk = C:\Program Files\BigFix\BigFix.exe
O8 - Extra context menu item: &Google Search - res://C:\Program Files\Google\GoogleToolbar1.dll/cmsearch.html
O8 - Extra context menu item: Backward Links - res://C:\Program Files\Google\GoogleToolbar1.dll/cmbacklinks.html
O8 - Extra context menu item: Cached Snapshot of Page - res://C:\Program Files\Google\GoogleToolbar1.dll/cmcache.html
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\Office10\EXCEL.EXE/3000
O8 - Extra context menu item: Similar Pages - res://C:\Program Files\Google\GoogleToolbar1.dll/cmsimilar.html
O8 - Extra context menu item: Translate into English - res://C:\Program Files\Google\GoogleToolbar1.dll/cmtrans.html
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - (no file)
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - (no file)
O12 - Plugin for .spop: C:\Program Files\Internet Explorer\Plugins\NPDocBox.dll
O16 - DPF: {2FC9A21E-2069-4E47-8235-36318989DB13} (PPSDKActiveXScanner.MainScreen) - http://www.pestscan.com/scanner/axscanner.cab
O16 - DPF: {56336BCB-3D8A-11D6-A00B-0050DA18DE71} (RdxIE Class) - http://207.188.7.150/22ca13acb9318cd...p/RdxIE601.cab
O16 - DPF: {74D05D43-3236-11D4-BDCD-00C04F9A3B61} (HouseCall Control) - http://a840.g.akamai.net/7/840/537/2...ll/xscan53.cab

Can you help again? I tried downloading the suggested firewall, however was not able to get back on internet. I will try again to make sure that I got a complete file.

Hiya,
No need to worry about DSO Exploit in Spybot. It won't remove, its a bug with Spybot flagging it each time. Just ignore it or set Spybot to Ignore it. To set Spybot to ignore it, follow these instructions:

1. Open Spybot.
2. Go to the "Mode" Menu and click "Advanced"
3. Click The Settings option on the Right Hand side and click Ignore Products
4. Click the Security Tab and put a checkmark next to DSO Exploit

That log is clean btw.

Thanks again. Since reading other posts I was worried about the DSO Exploit. I take it is not such a threat to show up?

Yep, Nothing to worry about. Zero says it is just a glitch and I've also heard it somewhere else. I'll mark this thread as resolved