What I did:
Since I could still access the O.S. main functions, I used the file search to look for all files created on yesterday's date. I ordered them by their creation time, and then scrolled down to near the time of the infection and found several adobe reader files and two random named executable (.exe) files that were created in about a 4 minute period that was separated by any other file creations by more than 15 minutes. I removed all these to the recycle bin and rebooted the computer normally. The self executing application did not start and I was able to fix the proxy settings, run rkill.com, and update and run MBAM. So far the infection has not resurfaced.
Point of note:
Since I am sure the zero day exploit of Adobe Reader 9 was to blame for the infection, I disabled all Adobe Reader add-ons in the browser, and relocated the file C:\Program Files\Adobe\Reader 9.\Reader\authplay.dll as this page at adobe.com suggests: Adobe Flash, Reader, and Acrobat Security Advisory
Edited by Tweener, 09 June 2010 - 03:11 PM.