Infection that turns installation .exe into invalid win32 application

My monitor, now and before I posted this thread, goes black and returns normal, every minute.. Does it have to do with infected driver?

No, you never had an infected video driver. You may post in the Microsoft Windows Forum for more assistance with this problem.

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Update Adobe Reader
Earlier versions of Adobe Reader have known security flaws so it is recommended that you update your copy

• Go to Start > Control Panel > Add/Remove Programs
• Remove ALL instances of Adobe Reader
• Re-boot your computer if required.
• Once ALL versions of Adobe Reader have been uninstalled, visit: <> and download the latest version of Adobe Reader.
  
• Make sure you uncheck Yes, install McAfee Security Scan Plus - optional if prompted.

Alternative Option: after uninstalling Adobe Reader, you could try downloading and installing SlimPDF Reader from >here< SlimPDF Reader comes with no bloatware and loads extremely quickly.

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Your Java is out of date. Older versions have vulnerabilities that malware can use to infect your system. Please follow these steps to remove older version Java components and update.

Updating Java:

• Download the latest version of Java Runtime Environment (JRE) 7 Update 5.
• After the download completes, close any programs you may have running - especially your web browser.
• Go to Start > Control Panel double-click on Add/Remove programs and remove all older versions of Java.
• Check any item with Java Runtime Environment (JRE or J2SE) in the name.
• Click the Remove or Change/Remove button.
• Repeat as many times as necessary to remove each Java versions.
• Reboot your computer once all Java components are removed.
• Double click the Java setup file you just downloaded and follow the prompts to begin the installation.

Now to Clean out the Java cache:

Go into the Control Panel and double-click the Java Icon. [external image: Posted Image]

• Under Temporary Internet Files, click the Settings… button
• click the Delete Files button.
• There are three options in the window to clear the cache - Leave all 3 Checked
  
  • Downloaded Applets
    Downloaded Applications
    Other Files
• Click OK on Delete Temporary Files Window
  Note: This deletes ALL the Downloaded Applications and Applets from the CACHE.
• Click OK to leave the Temporary Files Settings
  
• Click OK to leave the Java Control Panel.

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Delete DDS, GMER, and TDSSKiller from your desktop.

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Follow these steps to uninstall Combofix

• Click START then RUN
• Now copy/paste Combofix /uninstall into the runbox and click OK. Note the space between the ..X and the /U, it needs to be there.

[external image: Posted Image]

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Here are some tips to reduce the potential for spyware infection in the future:

Updates

• It is very important that you keep your Operating System and applications up to date so that you will be less susceptible to malware.
• It's a good idea to have Windows Update automatically download and install updates as they become available.
• Secunia Online Software Inspector is a great tool that will tell you which of your applications are outdated and vulnerable to attack.

Run Anti-Virus Software

• For an excellent list of free anti virus software, free online virus scanners, free spyware detection/removal and free firewalls, click here.
• IMPORTANT! Please make sure you only have ONE firewall and ONE real-time antivirus installed on your system.
• When using "on demand" scanners, first update the detection signature files, then disconnect from the internet and disable your resident security program before running the scan.
• Once complete, remember to re-engage your resident security before going online.

Passwords

• It is good security practice to change your passwords to all your online accounts on a fairly regular basis, this is especially true after an infection.
• Refer to this Microsoft article
  Strong passwords: How to create and use them and consider a password keeper, to keep all your passwords safe.

Spyware Protection

• This is a good time to set up protection against further attacks. In light of your recent problem, I'm sure you'd like to avoid any future infections. Please read these well written articles:
• How to Prevent Malware by miekiemoes
• PC Safety and Security–What Do I Need?

Additional Software

• To help protect your computer in the future I recommend that you get the following free programs if you do not already have them:
• SpywareBlaster prevents the installation of ActiveX-based malware, blocks cookies, and restricts the actions of "bad" sites. See tutorial here
• MVPS HOSTS FILE replaces your current HOSTS file with one that will restrict known ad sites from serving you unsolicited advertisements.
• Google Chrome is a great alternative to Internet Explorer and Firefox.

Follow these steps, keep your antivirus program and antispyware programs updated, and scan with them on a regular basis. By doing so, your potential for being infected again will reduce dramatically. 

Hopefully this should take care of your problems! Good luck.