I am looking at a mate's computer for him; the computer kept looping to the F5 menu and back.

I tried a chkdsk /r from the RC which didn't work. I then did a repair install.

Windows booted, and I ran MalwareBytes, which found malware.trace.

It is Windows XP SP1 upgraded (by me) to SP2.

Could this malware be caused by the malware found in this month's security updates from Microsoft?

When I tried to add my post to the above thread, it wouldn't let me do it

Following those instructions here is the DrCureIt log.

I saved it as .csv so I have pasted it into a txt file

It takes 2 mins to shut down, and IE wont open links properly. Is it time for a complete reinstall?

Virut is very bad, read about it:

miekiemoes' Blog: Virut and other File infectors - Throwing in the Towel?