This altnet issue may already be resolved elsewhere but if not here is one solution.
I had exactly the same problem and finally found how to remove altnet from the registry. The problem is when the user who is trying to clean altnet is not the one that downloaded it!
There is a user in your computer who created this entry (maybe downloading Kazaa) and as such has special permission over that registry entry that not even someone with administrators rights can change.
Therefore what you have to do is to logon as the user in question and then go to regedit and delete the altnet entries. It worked for me.
Good luck
EdH
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Make sure you use proper prevention to keep from having problems occur to your computer in the future.
