Proxy virus/hijack, New tab pop-ups and adware!

I am running windows 8.1 and using Chrome browser, Chrome shows a proxy server as 127.0.0.1:8118 places ads on pages that I know ads are not there, doesn't allow me access to some of my vendors sites and opens new tabs with directing to driver downloads or updates. Every time I change the proxy server settings it reappears. I have AVG free version and it hasn't reported any problems since this started about 5 days ago. I have updated virus database (twice). I have ran OLT and only received one txt file (olt.txt) it is attached. Thank you for your assistance in advance, T.C. Miller

file didn't attach added new post with file in-line.