[Jazz]

I don't why I didn't think of this before. Try another mouse. Is IE still acting up???

For future reference, you should really have deleted the XP partition, created another one and then formatted it before installing XP. It's a totally clean way of doing things.

Download CCleaner. Run the 'Windows' and 'Applications' under 'Cleaner Settings' and re-run all the scans you have performed, again, including the online antivirus scans and see what occurs, as it is obvious some malware is still present. Do not use the Registry Cleaner located under 'Issues', when you use CCleaner. You will find that anti-malware scans to need to be repated a number of times, as many as if takes, really, in order to purge a system. Don't forget to disable System Restore again, prior to scanning.

Ultimately, you may have to post a HijackThis log, but let's see what occurs after the aforementioned has been completed.

Incidentally, do you have a firewall installed, properly configured and up-to-date with all relevant updates???