BleepingComputer.com: PUM.Bad.Proxy - how to remove this virus?

Hi I'd really appreciate some help with regards to vius removal please. I'm starting this thread on behalf of my brother who is having problems with his laptop.
The time line of events are as follows:
(Vista OS)

System started to run slowly, decided to reboot.
PC would not log off so had to do a forced shut down.
On reboot the PC would not open .exe files as it was asking to associate these with a program.
Opened in safe mode and managed to do a restore. Ran Malwarebytes on normal mode and safe mode.
Found virus under normal mode (but not safe mode)and said that viruses had been removed. On reboot the viruses are still there. Viruses still do not appear in safe mode.

 pum. copy.JPG (36.75K)
Number of downloads: 4

Thanks in advance for any help.

Chris


MALWAREBYTES LOG:

Malwarebytes' Anti-Malware 1.46
www.malwarebytes.org

Database version: 6219

Windows 6.0.6002 Service Pack 2
Internet Explorer 8.0.6001.19019

30/03/2011 23:18:26
mbam-log-2011-03-30 (23-18-26).txt

Scan type: Full scan (C:\|D:\|)
Objects scanned: 386419
Time elapsed: 2 hour(s), 45 minute(s), 0 second(s)

Memory Processes Infected: 0
Memory Modules Infected: 0
Registry Keys Infected: 1
Registry Values Infected: 1
Registry Data Items Infected: 0
Folders Infected: 0
Files Infected: 0

Memory Processes Infected:
(No malicious items detected)

Memory Modules Infected:
(No malicious items detected)

Registry Keys Infected:
HKEY_CURRENT_USER\Software\AVSolution (Trojan.Agent) -> Quarantined and deleted successfully.

Registry Values Infected:
HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\proxyserver (PUM.Bad.Proxy) -> Quarantined and deleted successfully.

Registry Data Items Infected:
(No malicious items detected)

Folders Infected:
(No malicious items detected)

This post has been edited by Budapest: 31 March 2011 - 04:44 PM
Reason for edit: Moved from Virus, Trojan, Spyware, and Malware Removal Logs ~BP

Please follow the instructions in ==>This Guide<==. If you cannot complete a step, skip it and continue.

Once the proper logs are created, then make a NEW TOPIC and post it ==>HERE<== Please include a description of your computer issues and what you have done to resolve them.

If you can produce at least some of the logs, then please create the new topic and explain what happens when you try to create the log(s) that you couldn't get. If you cannot produce any of the logs, then still post the topic and explain that you followed the Prep. Guide, were unable to create the logs, and describe what happens when you try to create the logs.