"Nuking" is the sure way to eliminate malware albeit extreme. Short of nuking I like the following (mostly free) utilities that I keep updated and run regularly to keep malware off my machine: Spybot, Adaware, CWshredder, CCleaner, Registry Mechanic, Pest Patrol, Spywareblaster, Spywareguard. and AVG free for antivirus and Sunbelt Kerio firewall.
I think from what you have posted you should probably bite the bullet and do the whole enchilada with delete, reformat, and re-install. Then update windows to present and install the utilities I list above or go with recommendations from other reputable folks. Be careful, some of the spyware programs out there sound good but in reality they are spyware.
I hope this helps or someone else sharper than me will jump in and help you.
Charlie
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