Both Firefox and IE Hijacked - This happened after browsing to boingboing.net (a Google search result)
Runing Windows XP SP3 - patched up to current (except for 2 Dot NET and Silverlight updates that fail)
This desktop machine is a domain member but my Vista Desktop logged in as the same user has no problems
Created a new user profile, but the new profile developed the same issue after an hour.
Can never browse to http://windowsupdate.microsoft.com/
in IEv8 - the session seems to redirect; Firefox reports "The connection to the server was reset while the page was loading." in most pages
%windir%\windowsupdate.log shows this:
2010-06-21 21:54:21:083 444 14a0 Misc WARNING: WinHttp: SendRequestUsingProxy failed for <http://download.windowsupdate.com/v9/windowsupdate/redir/muv4wuredir.cab>.
CA ITMv8.1 - found some pests and deleted them
Updated to IEv8
Then ran full scans with Windows Defender and and MS Security Essentials - all passed
Ran GMER - Looks OK
Ran Hijack This - Looks OK
Ran Systernals Autoruns - Looks OK
Running out of ideas - please help