Per the malware forum administrator's suggestion, I am starting a new topic here as they did not see any obvious signs of malware. http://forums.whatthetech.com/index.php?showtopic=114281

This is a windows 7 computer attached to a home network. The network is working fine (3 other computers, 2 running win 7). Suddenly the computer started to be very slow to respond. It will not connect to a wireless adapter even though the adapter is properly installed (in device manager) and shows " connected"–there is No Internet Access. The router address is 192.168.1.1. DHCP assigns addresses. However, this machine is showing an address in ipconfig of 169.254.221.4. It would not renew or release. When I attached an ethernet cable it eventually saw this machine as 192.168.1.6. In the router interface however this computer shows as 192.168.1.4 and the name of the computer attached to 192.168.1.6 is new-host-2. I have copied a hijack this log below. All start up group items have been disabled in msconfig. Rocket Dock and Updates Scheduler from an income tax program reactivated themselves in the startup tab. Also, there seems to be a "bad blokc" event in the Event Log but the Lenovo/IBM disk diagnostic program suggested by tech support did not show any problems. Any ideas?