BleepingComputer.com: System32 problems preventing installs

I'm the new guy at work and have inherited the IT responsibilities. We do a lot of drafting and my boss brought in his son's old computer (still very fast) for a drafting machine. I am trying to install the required programs, but even before attempting installation I have had troubles.

Since I am new to this I hope I am not putting too much into one post. I'll try to explain the trouble completely. If there are things that need to go somewhere else please let me know and I'll pair this down.

So here goes:

-The machine is running an Intel core2 QUAD CPU with the Windows-Vista Ultimate 64 bit OS.

-On boot up I get two errors every time:
1 - "...\System32\Cabinet.dll is either not designed to run on windows or contains an error..."
2 - "...\System32\nvsvc64.dll is not a valid Win32 application."

-This led to some research where I found out the Cabinet.dll file is necessary, but can also be spoofed by malware, and that it should be quite large. After looking in the System32 folder I found the Cabinet.dll file I have is only 88KB (The nvsvc64.dll file is only 83KB).

-While trying to find out how to replace these files with original copies a third error popped up stating that:
3 - "b0j6j16.bat has stopped working"

-Looking into error 3 I found out that b0j6j16.bat is a .bat from some sort of malware.

-I then attempted to run Microsoft Defender in the MS Security center in order to detect or remove the problem but Defender would not start and said that the definitions were out of date.

-Then attempted to get updates and was told ""Security Center can't update definitions for Windows Defender."
4 - Googled how to fix Defender, found out that I needed to start in safe mode and run %windir% in the search line to find the "SoftwareDistribution" folder and rename it to "SoftwareDistribution.old." I did this (three separate times) and re-booted in normal mode and then attempted to update the definitions for defender with the same result of "...can't..." all three times.

-Tried to install STOPzilla...unable, it's not 64-bit compatible.

-Tried to install Windows Defenderx64 from the windows site and validated my product and the download would not happen (multiple attempts).

-Checked the system files by using sfc /scannow from the run line. No errors came up about system files in the wrong place.

-Attempted to run winmgmt from the cmd prompt but got the following error:
5 - "...\System32\cmd.exe is not a valid Win32 application."

-Did some research on what to do to get my cmd prompt back, checked for bad cmd programs such as cmd.com, found nothing. (Found a cmd.exe.mui, but don't know if it's good or bad)

-Since cmd prompt isn't working I ran the winmgmt /verifyrepository from the run line with no results, then ran just winmgmt by itself in the run line and got a very fast window full of something but couldn't read it since the run line doesn't keep the window open like the cmd line does.

-As I stated at the beginning, I am trying to install a CAD program (.NET based) I wanted to get these problems fixed first. Since I couldn't I attempted to install them anyway. That was (not surprisingly) unsuccessful. I received the following errors:
6 - "...\System32\Cabinet.dll is either not designed to run on windows or contains an error..."
7 - "Microsoft Visual Basic for Applications core (error 1601)"
8 - "Microsoft Visual Basic for Applications localized (error 1601)"
9 - "DHTML Editing Control for Applications (error 1601)"
wher the applications in 7, 8, and 9 are all prerequsites that I was trying to load in order to load the CAD program. Checking with the CAD company sight 1601 appears to be a "compile error" but there isn't anything on it.

-To sum it all up I believe that the machine has been used poorly in the past and has serious System problems but I do not know how to fix them. I think after a good system fix the install problems will go away.

- I am attaching a copy of an HJT log (that I have no idea how to use...I just know that from what I have read it will be needed in order to diagnose the problems)

If anyone can point me in the right direction to go, or tell me the things I need to know about the HJT log I would greatly appreciate it. And then I can hopefully move onto doing my actual job instead of banging my head on the desk about this stuff that I'm not so good with.

Again, sorry for the long post, I just wanted to be thorough. I've not done this type of stuff before and this is my first time in a computer help forum. If I've done something inappropriate or out of place please correct me so I can learn.

Thanks a ton,

Not-IT

MOD EDIT: I have deleted the HJT logfile and will forward a copy to you via PM. See my next post in this topic for further info.
[attachment=10357:hijackth...20081230.txt]

Hi Not-IT and welcome to Bleeping Computer!

Presumably the system is infected with malware - so you've gotta make a choice here. Do you want to work on this thing for a while to try and save the Windows installation - or do you want to wipe the drive (which removes the viruses) and reinstall Windows?

If you want to wipe and reinstall - this is the place to be. It's likely that this will be the faster process for you.

If you want to remove the malware (for whatever reason), then please post over in the Am I Infected forum. The experts there will help you to remove the malware - and they'll request a HJT logfile if they think one is needed. Here's the link to the Am I Infected forum: http://www.bleepingcomputer.com/forums/forum103.html

More on the HJT in my PM

Usasma,

Thanks for the info and guidance. I thought that wiping and starting over might be a good route to go, but not being a computer whiz was unsure. It helps to have a confident direction to move in. So I think that's the way I'll proceed. It will probably be a day or two before I get back to you about how it went.

We just built a new machine and I'll be getting everything set up there and then I'll finish with this one. I have no sentimental attachment to this instal. I just need to make sure I save all of the boss' family stuff before I dump it. I appreciate the guidance.

You guys are very helpful here and I appreciate the welcome. I hope you all have a super happy New Year. Be Safe.

Not-IT

P.S. Thanks for the PM. I'm glad that the HJT stuff isn't necessary with the re-install. It seems very confusing (at least at the moment, nbut I'm learning. It's probably not all that bad when you know.)