I bumped into the Newsfudge problem a few days ago and with all frustration and also all the bogus solution pages out there, I've decided to post a guide to help others.
The key solution I found was using a Sirefef removal tool from ESET(http://kb.eset.com/esetkb/index?page=content&id=SOLN2895). This along with a few other tools eliminated my problem.
For more detail on the symptoms and how I handled them, check out my article: http://www.ultratechy.com/how-to-remove-newsfudge-and-win32sirefef-trojan/
This bug is very annoying and very difficult to cure manually but the ESET tool did a pretty good job.
Hope it works for you!
Edited by Orange Blossom, 25 July 2012 - 07:52 PM.
Moved to more appropriate forum. ~ OB