BleepingComputer.com: Virus that seems to affect Keyboard functionality

Yesterday, I started up my pc to find that every time I typed a letter a number would follow: type t get t7, type b, get b5. Then suddenly my cursor would run off down the page. So of course I thought my keyboard was dust. Changed batteries, nope. Deleted drivers, rebooted to re-install and got a message saying that the pc had newer drivers, the installation software was out of date. Decided wireless keyboard was dust and bought a usb wired. Upon instalation, same issue occurred. Got suspicious and ran an AVG scan and found 5 trojans, 2 java type could be healed, 3 generic could not. I deleted those. Did a search on keyboard viruses and got the usual, keyboards do not commonly get viruses. I do not believe my keyboard has a virus but do believe a virus is affecting my ability to use the keyboard, as if it's scrambling whatever I do. At this point, I decided to check my add remove programs and found the following ContextualPlatformadWorldmarketplace or something very close to that. Did a search and found support telling me to copy paste info into notepad and run combofix.exe. Warned that doing so may cause the program to ask to reboot but it didn't and when I tried to do as suggested, nothing happened. I decided to try and delete it and did so without any warnings, seemed a bit too easy. I then did a search on keyboard viruses because all of the clean up AVG did didn't correct the issue. This is when I became unable to put spaces between words and after a certain amount of time, cursor would again go off on it's own down the page. I then got frustrated and did a windows update, shutting down entire pc. Upon start up this morning, I saw a black screen saying something like system config could not be found, choose one of the following: Profile 1 was the only option. So I chose that and logged in. Same issue, keyboard doing its own thing. I ran another AVG scan, found more cookies but no known viruses. I had originally set my AVG to scan daily but am suspecting that hasn't happened as it should. Over the last few weeks, I got several notices from AVG that it was deleting cookies found in my documents, this was happening very frequently and led me to believe that everything was working properly. I suspect that a virus has been hiding in my pc since last October when I switched to AVG because Antivira and Malwarebytes hadn't caught a serious virus, cannot recall what it was but essentially it would redirect me to ad sites when doing a search of any kind on the internet. At that time I used rkill and another program to clean up the problem. I am using Windows XP and I have a Dell Vostro200. Any help you can give would be greatly appreciated. Btw, I have not done any of this in safe mode so far, was afraid of screwing up further since the system config message this morning.