BleepingComputer.com: XP IE8 toolbar blinks and heading page

A month ago had same thing happening. Had entries called axel.dav on computer. Restored from old orginal backup disks when purchased in 2006 and got computer back to working order still had axel.dav entries and just deleted them because problem was gone. Redownloads was a long process I hated. Had to redownload most everything. My operating system is legal and been registered and checked out because when restored then had to get help from microsoft because network framework was not unpdating and bombing. This new occurence started yesterday 04/05. Since the first blinking occurence after restored I have been using IOBit software and Advanced System Care along with Norton Internet Security. Iobit did remove some stuff in registry the day before the 2nd occurence.
Norton Internet Security has been blocking trojans for about a week...maybe one slipped through but software hasnot found any. Downloaded Spybot the same day of new occurence. It said it removed gamevance and wild tangent. But,when I explore from start menu under program files windtangent is still there with titles such as apps/components/LFS/LicenseStores. Second run of spybot still doesnot detect wild tangent.
To be more specific about the blinking...the top bar of internet which is normally set to a blue color blinks as does the 3rd line of toolbar listing file/edit/view, etc. I can not click once to select any part of a sentence as in https line it highlights the entire sentence and continues to blink. Anything I highlight with cursor (turns to dark blue)and blinks. I seen on other sites from searches this has happened to other people and some sites require hjt download and registry fixes.
Things that didnot work were: disabled plugins, spybot deleted gamevance and wild tangent, iobit security fixed items and so did advanced system care, redownload of ie8 didnot work either.
The day this problem occurred, earlier in morning was removing progams from add/remove. Removed microsoft office suite(that was on computer since purchase) after outlook tried to come up on for mail. Office Suite isnot functional donot have a key,I use webmail. Also downloaded open office . I was replying to unsubscribe to an email from a user at btly.com when outlook tried to open. I wrote to the abuse site at bitly.com, said was unfounded. I was a strange reply because my maildemon spit it back saying it wasnot mailed but in it was a reply saying abuse was unfounded. Replied again that they were spamming me and remove my email. They have not replied. Then when got to internet this was occuring. Trying to avoid wiping out everything again.
Unable to restore d drive is full no restore point created. That is why we went to orginal backups we took. I think I figured out from clicking on explore of d I can remove the folder called Hp photoshop premier backups to get more space because this has a folder and then recovery has a folder. I think my husband put that there by mistake and that is why we are out of space. Meanwhile restore points have not been created since.
Any help is appreciated.
Just logged off ...restarted had ati video bios poller error. I was trying f8 to go to safe mode, forgot key. when got back on to windows was not blinking. Fan was running loud. 12:16 am went to click favorites to see if cursor would hold and of course not and then blinking started occurring. going to try safe mode and delete add ons that are in internet options. well back again at 12:57 am safe mode reset didnot work for internet only addons left are toolbars which I cannot delete and yahoo search.

This post has been edited by hacklehead: 06 April 2011 - 11:58 PM
Reason for edit: Moved from Virus, Trojan, Spyware, and Malware Removal Logs ~BP

Just want to update you that I went on to the Norton Help/support Chat site. With help of the tech imran khan we downloaded Norton Power eraser. I had tried that on my own but didnot work. He ran it while in remote and wha..la.. my computer no longer has the blinking occuring. Asked him to explain and he said I was infected with a virus. Is there any other suggestions here to follow up and make sure my computer is clean? Fan is still running high at times, which I think means high processing...used to get message from Norton. Also, removed backup line on d recovery drive for photos. computer is now making restore copies.

Well it happened again. Few hours later after deleting line in recovery d Drive and a few other things done on the internet. Well still unsure of the cause.
Got help with 2nd tech at Norton. Got Buggegari Bash who did norton power eraser. Dns entry would not delete that was suspicious. I asked for the 1st tech,Imran Khan,unavailable. Then was refered to try to do it myself or pay their expert staff to remove. I said perhaps another antivirus can help me and I would look into that. Well, he took another try, but dns is still there. But, also 2nd run of it and boot up in selective mode with startup items off, a few times did get rid of the blinking. Took a restore point, enabled all startup points and then tried restart to normal. Its is gone for now, but dns entry is still lurking out there. This DNS entry was deleted with the 1st tech. I know if it is a virus it is still there and if they believe it is too, they know it still here. Referred to website norton.com/nbrt.
Even got a follow up phone call from Norton. Different person, probably supervisor, heard another man's voice in background. They're telling me they will call me in 24 hours to see if I complete instruction on the website to create norton bootable disk. I will not have to rely on my old backup disks again, should system fail.
I'll discuss possible theories. First therory, the orginal axel.dav file started in the photo file months ago. Deleted all occurences and restored the system. But, recently found it was still erroneously backuped up to recovery d. I found this when I checked what was on drive d(RECOVERY DRIVE), right click start choose explore. One line read recovery (with lock picture), clicking this a warning was produced. The line above looked and felt erroneous and said it was the photo backup. Deleted it and restores happening again because there is enough of space. No more space warnings.
Second Theory about Add-ons. Note enabled add-ons are norton,symantec,CNavExtBho, spybot, internet(help & diagnose), Sun Micro(Javas). Note disabled add-ons are windows messenger/webhelper/micro search & windows live, adobe, google, IObit and realplayer(possible other theory to problem).
Third theory I will not redownload that program that is not working without norton being up. When Norton came up that day blinking occurred, it was after download. Wanted to shutdown/restart to complete cleaning up. The program is still there not functioning though. Hotkey Sequence: Ctrl+Alt+CapsLock is suppose to call up the login page but it is froze again. Just thinking of similar problem referred to me how hot key sequence click alt + prt sc + shift caused high resolution problems for one person. I was using print screen for paint application the day it happened and caps lock was on. Donot know if accidentally hit alt at some time during. I have a background on my desktop of starfish. When I allowed temporary remote connection to tech, background turned dark blue.
At this time thankful for response from Norton Anti-virus tech team. Still think I need HJT log looked into.

I have been updating my own orginal post with only myself replying. In confusion I thought I have been pinned with red x, no it was the post above me when I became first in queue.
Orginal post "XP IE8 toolbar blinks and heading page"
Which is currently below this one in the forum.
I have been listed many details to orginal problem and hope my HighJackthis log can be looked at. Sorry but donot know how to delete this since it is now posted, learned to use edit and add additional comments to my orginal.

EDIT: Merged topics ~ Hamluis.

This post has been edited by hamluis: 10 April 2011 - 11:09 AM