IE7 can't connect

I'm handling a PC that seems to have knocked me around a little bit. This system won't let me connect to the internet. I've checked the hardware, and im almost certain it's not that. I've plugged in a cat-5 to usb adapter, and the system reads it, says it's connected, and still won't connect.

I've reconfigured the system every way I know how, and still I get the same thing.

I type in, say, www.google.com.
It returns saying "The address is not valid". and resets the current url to "http:///"
I'm on a network with other computers connected, all of which are able to reach the internet.

The system is running IE7 (i believe an older version) and windows xp media center with SP2

i was told the system was on during two power outages. Again, however, changing the hardware and devices doesn't seem to fix the problem.

Just in case malicious software might be the cause, I'm also throwing in the HJT log.

EDITED by paws: HJT log file removed and uplifted as an attachment
📎HJT.txt

Thanks for your help.

You may be infected with IETray %WINDOWS%]\web\ers_src.htm %SYSTEM%]\iemsg.dll %WINDOWS%]\system\iemsg.dll %WINDOWS%]\web\ers_def.htm are all files associated with the above malware. post again, but in the HIJACKTHIS forum. Tallon41

Thanks. I'll repost it there.

no problem, if they 'clear you' and you are still having the problem, come back to this thread ! good luck ! Tallon41

alright, they cleared me. I'm in the process of updating to xp sp3 (via a standalone and a flash drive) and I have two hours to get this thing nailed.

a traceroute to google returns with "unable to resolve target system name". I've already done this to try to fix it.

I'm on a medium sized network that I know works. I've used a known good hardware solution to ensure that it isn't hardware. So we're looking at a software issue keeping me from connecting to the internet.

aaaand my update was cancled because it tried to write to something that denied it access… … …

Try it again, once the download is done and the installation begins, turn-off all Software firewalls and Anti-virus protection and disconnect from the internet. See if that works. Tallon41