Malware - From Simplyzip That I Cant Remove

After a recent virus scan using McAfee I turned up a new Malware I think associated with SimplyZip.
The file is quarantined but cannot be removed. Repeat virus scan turn up and a exe file that McAfee warns is a trojan.
In addition it quaratines a text file with the following information:
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\Quarantine\A0054388.exe => A0054388.exe
C:\System Volume Information\_restore{DAAD8284-5896-4B40-A753-8454BDC2E5A5}\RP463\A0054421.exe => A0054421.exe

I have run adaware, spybot ATF cleaner and rerun the virus scan and it is still there and gets qurantined again.
Any help would be much appreciated.

Mactoll

Logfile follows:
Logfile of HijackThis v1.99.1
Scan saved at 10:45:40 AM, on 5/15/2007
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v6.00 SP2 (6.00.2900.2180)

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\System32\ibmpmsvc.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\S24EvMon.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\system32\Ati2evxx.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Synaptics\SynTP\SynTPLpr.exe
C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
C:\WINDOWS\system32\TpShocks.exe
C:\PROGRA~1\ThinkPad\PkgMgr\HOTKEY\TPHKMGR.exe
C:\PROGRA~1\ThinkPad\UTILIT~1\EzEjMnAp.Exe
C:\Program Files\ThinkPad\PkgMgr\HOTKEY\TPONSCR.exe
C:\Program Files\ThinkPad\PkgMgr\HOTKEY_1\TpScrex.exe
C:\WINDOWS\system32\dla\tfswctrl.exe
C:\Program Files\IBM\Messages By IBM\ibmmessages.exe
C:\IBMTOOLS\UTILS\ibmprc.exe
C:\Program Files\ThinkPad\ConnectUtilities\QCWLICON.EXE
C:\WINDOWS\system32\RunDll32.exe
C:\WINDOWS\system32\rundll32.exe
C:\Program Files\Network Associates\VirusScan\SHSTAT.EXE
C:\Program Files\Network Associates\Common Framework\UpdaterUI.exe
C:\Program Files\Roxio\Easy Media Creator 7\Drag to Disc\DrgToDsc.exe
C:\Program Files\Zone Labs\ZoneAlarm\zlclient.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\QuickTime\qttask.exe
C:\Program Files\Adobe\Photoshop Album Starter Edition\3.0\Apps\apdproxy.exe
C:\Program Files\Hewlett-Packard\HP Software Update\HPWuSchd2.exe
C:\Program Files\Common Files\Real\Update_OB\realsched.exe
C:\Program Files\Picasa2\PicasaMediaDetector.exe
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\avgas.exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\Google\GoogleToolbarNotifier\1.2.1128.5462\GoogleToolbarNotifier.exe
C:\Program Files\Digital Line Detect\DLG.exe
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
C:\Program Files\Cisco Systems\VPN Client\cvpnd.exe
C:\Program Files\IBM\IBM Rapid Restore Ultra\rrpcsb.exe
C:\Program Files\Common Files\LightScribe\LSSrvc.exe
C:\Program Files\Network Associates\Common Framework\FrameworkService.exe
C:\Program Files\Network Associates\VirusScan\Mcshield.exe
C:\Program Files\Network Associates\VirusScan\VsTskMgr.exe
C:\WINDOWS\system32\HPZipm12.exe
C:\WINDOWS\System32\QCONSVC.EXE
C:\WINDOWS\system32\RegSrvc.exe
C:\WINDOWS\system32\TpKmpSVC.exe
C:\WINDOWS\system32\ZoneLabs\vsmon.exe
c:\Program Files\Common Files\Symantec Shared\Security Center\SymWSC.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\Hijackthis\HijackThis.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.partners.org/
O2 - BHO: AcroIEHlprObj Class - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: (no name) - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: DriveLetterAccess - {5CA3D70E-1895-11CF-8E15-001234567890} - C:\WINDOWS\system32\dla\tfswshx.dll
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar3.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar3.dll
O4 - HKLM\..\Run: [S3TRAY2] S3Tray2.exe
O4 - HKLM\..\Run: [SynTPLpr] C:\Program Files\Synaptics\SynTP\SynTPLpr.exe
O4 - HKLM\..\Run: [SynTPEnh] C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
O4 - HKLM\..\Run: [TPKMAPHELPER] C:\Program Files\ThinkPad\Utilities\TpKmapAp.exe -helper
O4 - HKLM\..\Run: [TpShocks] TpShocks.exe
O4 - HKLM\..\Run: [TPHOTKEY] C:\PROGRA~1\ThinkPad\PkgMgr\HOTKEY\TPHKMGR.exe
O4 - HKLM\..\Run: [TP4EX] tp4ex.exe
O4 - HKLM\..\Run: [EZEJMNAP] C:\PROGRA~1\ThinkPad\UTILIT~1\EzEjMnAp.Exe
O4 - HKLM\..\Run: [ATIPTA] C:\Program Files\ATI Technologies\ATI Control Panel\atiptaxx.exe
O4 - HKLM\..\Run: [UC_Start] C:\Program Files\IBM\Updater\\ucstartup.exe
O4 - HKLM\..\Run: [UpdateManager] "C:\Program Files\Common Files\Sonic\Update Manager\sgtray.exe" /r
O4 - HKLM\..\Run: [dla] C:\WINDOWS\system32\dla\tfswctrl.exe
O4 - HKLM\..\Run: [ibmmessages] C:\Program Files\IBM\Messages By IBM\\ibmmessages.exe
O4 - HKLM\..\Run: [SSC_UserPrompt] c:\Program Files\Common Files\Symantec Shared\Security Center\UsrPrmpt.exe
O4 - HKLM\..\Run: [IBMPRC] C:\IBMTOOLS\UTILS\ibmprc.exe
O4 - HKLM\..\Run: [QCWLICON] C:\Program Files\ThinkPad\ConnectUtilities\QCWLICON.EXE
O4 - HKLM\..\Run: [BMMGAG] RunDll32 C:\PROGRA~1\ThinkPad\UTILIT~1\pwrmonit.dll,StartPwrMonitor
O4 - HKLM\..\Run: [BMMLREF] C:\Program Files\ThinkPad\Utilities\BMMLREF.EXE
O4 - HKLM\..\Run: [BMMMONWND] rundll32.exe C:\PROGRA~1\ThinkPad\UTILIT~1\BatInfEx.dll,BMMAutonomicMonitor
O4 - HKLM\..\Run: [ShStatEXE] "C:\Program Files\Network Associates\VirusScan\SHSTAT.EXE" /STANDALONE
O4 - HKLM\..\Run: [McAfeeUpdaterUI] "C:\Program Files\Network Associates\Common Framework\UpdaterUI.exe" /StartedFromRunKey
O4 - HKLM\..\Run: [RoxioDragToDisc] "C:\Program Files\Roxio\Easy Media Creator 7\Drag to Disc\DrgToDsc.exe"
O4 - HKLM\..\Run: [Zone Labs Client] C:\Program Files\Zone Labs\ZoneAlarm\zlclient.exe
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [QuickTime Task] "C:\Program Files\QuickTime\qttask.exe" -atboottime
O4 - HKLM\..\Run: [Adobe Photo Downloader] "C:\Program Files\Adobe\Photoshop Album Starter Edition\3.0\Apps\apdproxy.exe"
O4 - HKLM\..\Run: [HP Software Update] C:\Program Files\Hewlett-Packard\HP Software Update\HPWuSchd2.exe
O4 - HKLM\..\Run: [TkBellExe] "C:\Program Files\Common Files\Real\Update_OB\realsched.exe" -osboot
O4 - HKLM\..\Run: [Picasa Media Detector] C:\Program Files\Picasa2\PicasaMediaDetector.exe
O4 - HKLM\..\Run: [!AVG Anti-Spyware] "C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\avgas.exe" /minimized
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [ibmmessages] C:\Program Files\IBM\Messages By IBM\ibmmessages.exe
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\1.2.1128.5462\GoogleToolbarNotifier.exe
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: Cisco Systems VPN Client.lnk = C:\Program Files\Cisco Systems\VPN Client\vpngui.exe
O4 - Global Startup: Digital Line Detect.lnk = ?
O4 - Global Startup: Microsoft Office.lnk = C:\Program Files\Microsoft Office\Office\OSA9.EXE
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\IBM\Java141\jre\bin\NPJPI141.dll
O9 - Extra 'Tools' menuitem: IBM Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\IBM\Java141\jre\bin\NPJPI141.dll
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O11 - Options group: [JAVA_IBM] Java (IBM)
O12 - Plugin for .wav: C:\Program Files\Internet Explorer\PLUGINS\npqtplugin.dll
O16 - DPF: {17492023-C23A-453E-A040-C7C580BBF700} (Windows Genuine Advantage Validation Tool) - http://go.microsoft.com/fwlink/?linkid=39204
O16 - DPF: {20B51A32-5369-4A2B-A3A9-2579C086AAF5} (WebTextEditor.WebWP) - http://ppd.partners.org/lmr/lmr.cab
O16 - DPF: {225781F3-B27C-4182-83F1-CBF79247D36B} (PHSVPNPortal.VPNPortalCtl) - http://portal.partners.org/vpn/PHSVPNPortal.CAB
O16 - DPF: {61611A68-B68C-420E-8E4D-6C61E68C03C6} (Cu2a Object) - https://lmr.partners.org/lmr/cvt.cab
O16 - DPF: {6D3CF4F3-C2F3-46E7-A126-3E53102A6B91} (Pegasus ImagXpress Control v7.0) - https://lmr.partners.org/lmr/diagram.cab
O16 - DPF: {8CAF79C1-7DBE-47CC-A941-535B1E74A869} (Project1.FailSafeCtl) - https://lmr.partners.org/lmr/failsafe/failsafe.cab
O16 - DPF: {A8561647-E93C-11D3-AC3B-CE6078F7B616} (:-) VideoSoft VSPrinter 7.0) - http://ppd.partners.org/phsutils/lib/vsprint7.cab
O16 - DPF: {BCDD741A-3F0F-483F-AB50-345E464F3617} (WebTXProcessor.ctlWebTX) - https://lmr.partners.org/lmr/lmr2a.cab
O16 - DPF: {C74190B6-8589-11D1-B16A-00C0F0283628} (Microsoft TreeView Control 6.0 (SP6)) - http://ppd.partners.org/cabs/MSCOMCTL.CAB
O16 - DPF: {CAFEEFAC-0013-0001-0002-ABCDEFFEDCBA} (Java Runtime Environment 1.3.1_02) - http://132.183.169.243/plugins/jre/1_3/ami…_1_3_silent.cab
O16 - DPF: {D40E7275-159D-419E-9AC1-46FD8884B464} (LMRWebPrint.PrintByTemplate) - https://lmr.partners.org/lmr/LMRWebPrint.cab
O16 - DPF: {FDFB6B21-9F60-4C74-B540-32D83C4357D1} (Reg Class) - https://lmr.partners.org/lmr/LMRWebIESetting.cab
O20 - Winlogon Notify: QConGina - C:\WINDOWS\SYSTEM32\QConGina.dll
O20 - Winlogon Notify: WgaLogon - C:\WINDOWS\SYSTEM32\WgaLogon.dll
O23 - Service: Ati HotKey Poller - Unknown owner - C:\WINDOWS\system32\Ati2evxx.exe
O23 - Service: AVG Anti-Spyware Guard - Anti-Malware Development a.s. - C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
O23 - Service: Cisco Systems, Inc. VPN Service (CVPND) - Cisco Systems, Inc. - C:\Program Files\Cisco Systems\VPN Client\cvpnd.exe
O23 - Service: Google Updater Service (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: HP Status Server - Hewlett-Packard Company - C:\WINDOWS\system32\spool\drivers\w32x86\3\HPBOID.EXE
O23 - Service: hpdj - Unknown owner - C:\DOCUME~1\JAM38\LOCALS~1\Temp\hpdj.exe (file missing)
O23 - Service: IBM Rapid Restore Ultra Service - Unknown owner - C:\Program Files\IBM\IBM Rapid Restore Ultra\rrpcsb.exe
O23 - Service: IBM PM Service (IBMPMSVC) - Unknown owner - C:\WINDOWS\System32\ibmpmsvc.exe
O23 - Service: iPod Service (iPodService) - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: LightScribeService Direct Disc Labeling Service (LightScribeService) - Unknown owner - C:\Program Files\Common Files\LightScribe\LSSrvc.exe
O23 - Service: McAfee Framework Service (McAfeeFramework) - Network Associates, Inc. - C:\Program Files\Network Associates\Common Framework\FrameworkService.exe
O23 - Service: Network Associates McShield (McShield) - Network Associates, Inc. - C:\Program Files\Network Associates\VirusScan\Mcshield.exe
O23 - Service: Network Associates Task Manager (McTaskManager) - Network Associates, Inc. - C:\Program Files\Network Associates\VirusScan\VsTskMgr.exe
O23 - Service: Pml Driver HPZ12 - HP - C:\WINDOWS\system32\HPZipm12.exe
O23 - Service: IBM PSA Access Driver Control (PsaSrv) - Unknown owner - C:\WINDOWS\system32\PsaSrv.exe (file missing)
O23 - Service: QCONSVC - IBM Corp. - C:\WINDOWS\System32\QCONSVC.EXE
O23 - Service: RegSrvc - Intel Corporation - C:\WINDOWS\system32\RegSrvc.exe
O23 - Service: Spectrum24 Event Monitor (S24EventMonitor) - Intel Corporation - C:\WINDOWS\system32\S24EvMon.exe
O23 - Service: SymWMI Service (SymWSC) - Symantec Corporation - c:\Program Files\Common Files\Symantec Shared\Security Center\SymWSC.exe
O23 - Service: IBM KCU Service (TpKmpSVC) - Unknown owner - C:\WINDOWS\system32\TpKmpSVC.exe
O23 - Service: TrueVector Internet Monitor (vsmon) - Zone Labs, LLC - C:\WINDOWS\system32\ZoneLabs\vsmon.exe