OK, well I found the problem.. It was a Trojan Horse called Generic 9! There was about 7 files infected.. I updated my AVG and this time it found them.. I quarantined them and now everything is working better. I reinstalled LW and its now operating correctly. Also I noticed that one of the infected files was in my restore directory so I assume that is why I couldn't restore my computer.. I have restarted my computer several time now and everything seems to be still working so I hope I have removed it all.. I assume I should copy my Hijack This log and summit it to those who know but I am not sure where to do that at.. As mentioned elsewhere at this forum, beware of small files!! Thanks..