[Closed] FLASHING DESKTOP ICONS (explorer.exe crashing)

I am running Windows XP SP2 on my desktop computer. All of my icons and the start bar are flashing on and off. I ran antivirus and spyware programs and it detected some infections of Vundo and dropper.agent files . I quarantined and cleaned the infections and ran scandisk. Upon restarting the flashing still occurs. Please help! I do not have a system restore point to use.

Here is the hijackthis log:

Logfile of HijackThis v1.99.1
Scan saved at 11:51:59 AM, on 1/23/2008
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\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\avgas .exe
C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
C:\PROGRA~1\Grisoft\AVG7\avgupsvc.exe
C:\Program Files\Cisco Systems\VPN Client\cvpnd.exe
C:\Program Files\M-Audio\M-Audio Series II MIDI\MA_CMIDI_Inst.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\system32\ZuneBusEnum.exe
C:\WINDOWS\system32\wscntfy.exe
C:\WINDOWS\system32\WgaTray.exe
C:\PROGRA~1\MOZILL~1\FIREFOX.EXE
C:\Program Files\Hijackthis\HijackThis.exe
C:\WINDOWS\explorer.exe

R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = http://www.comcast.net/
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyServer = actsvr.comcastonline.com:8100
R1 - HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings,ProxyOverride = cdn
O3 - Toolbar: Encarta Web Companion - {147D6308-0614-4112-89B1-31402F9B82C4} - C:\Program Files\Common Files\Microsoft Shared\Encarta Web Companion\ENCWCBAR.DLL
O4 - HKLM\..\Run: [NvCplDaemon] RUNDLL32.EXE C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [!AVG Anti-Spyware] "C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\avgas .exe" /minimized
O4 - Global Startup: VPN Client.lnk = ?
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_04\bin\npjpi150_04.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_04\bin\npjpi150_04.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~1\OFFICE11\REFIEBAR.DLL
O9 - Extra button: (no name) - {B205A35E-1FC4-4CE3-818B-899DBBB3388C} - C:\Program Files\Common Files\Microsoft Shared\Encarta Search Bar\ENCSBAR.DLL
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - %windir%\Network Diagnostic\xpnetdiag.exe (file missing)
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
O18 - Protocol: msnim - {828030A1-22C1-4009-854F-8E305202313F} - "C:\PROGRA~1\MSNMES~1\msgrapp.dll" (file missing)
O21 - SSODL: WPDShServiceObj - {AAA288BA-9A4C-45B0-95D7-94D524869DB5} - C:\WINDOWS\system32\WPDShServiceObj.dll
O23 - Service: Adobe LM Service - Adobe Systems - C:\Program Files\Common Files\Adobe Systems Shared\Service\Adobelmsvc.exe
O23 - Service: AVG Anti-Spyware Guard - GRISOFT s.r.o. - C:\Program Files\Grisoft\AVG Anti-Spyware 7.5\guard.exe
O23 - Service: AVG7 Alert Manager Server (Avg7Alrt) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgamsvr.exe
O23 - Service: AVG7 Update Service (Avg7UpdSvc) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgupsvc.exe
O23 - Service: AVG E-mail Scanner (AVGEMS) - GRISOFT, s.r.o. - C:\PROGRA~1\Grisoft\AVG7\avgemc.exe
O23 - Service: Cisco Systems, Inc. VPN Service (CVPND) - Cisco Systems, Inc. - C:\Program Files\Cisco Systems\VPN Client\cvpnd.exe
O23 - Service: GoogleDesktopManager - Unknown owner - C:\Program Files\Google\Google Desktop Search\GoogleDesktopManager.exe (file missing)
O23 - Service: Google Updater Service (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: M-Audio USB Installer (MAudioUSBService) - Unknown owner - C:\Program Files\M-Audio\Fast Track Pro\MAUSBInst.exe (file missing)
O23 - Service: M-Audio Series II MIDI Installer (MA_CMIDI_InstallerService) - Unknown owner - C:\Program Files\M-Audio\M-Audio Series II MIDI\MA_CMIDI_Inst.exe
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe