Yes, sysinit32m.exe would be your problem.
FIRST: Boot into SAFEMODE: http://www.pchell.com/support/safemode.shtml
- if you have win 2K or XP AND have Cable or DSL, choose "Safe Mode With Networking" so that you can do step #4 in SafeMode
1. Uncheck this key with autoruns:
+ sysinit32m.exe c:\windows\system32\sysinit32m.exe
2. Then open up regedit (Start - Run - and type "regedit", press Enter).
- Navigate here: HKLM\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon\Shell
- Double click on "Shell", and the VALUE should only be "Explorer.exe". So delete everything BUT that value.
3. Now download, save, and Run Pocket Killbox: http://pctherapy.ca/opiate/Killbox/KillBox/KillBox.exe
- put a checkmark in "End Explorer Shell While Killing File".
- then type the path (c:\windows\system32\sysinit32m.exe) in the text box of "Full Path".
4. After the reboot, go to housecall and do a complete virus scan: http://housecall.trendmicro.com/housecall/start_corp.asp
- have it Clean or Delete anything it finds.
5. Navigate back to HKLM\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon\Shell.
- Make sure Explorer.exe is the only value.
Let me know.