A few coincidental/likely related problems happening all at the same time:
I recently discovered that AdWatch was not running in the background (I had not changed any settings...it was supposed to be); when I clicked on the icon, I got an error message that it "could not access the .exe file". So I used the disc to re-install it using the "repair" option. When I subsequently tried to start it up, I get the error message:
"Error initiating Ad-Watch. Please report the following error codes to lavasoft: Error Code 16-#0001".

At about the same time I was using Google, and several times when I followed a link, the page would suddenly be redirected to a separate "Google" page. I assumed it was a hikacking and ran AdAware 2007 Pro and Norton AV. The hijacking stopped (although I forgot to make note of what worm they found). Coincidentally, at the same time as my attempt at removal, I started getting error messages saying "This operation has been cancelled due to restrictions in effect on this computer. Please contact your system administrator."
I now can't change desktop properties or open the Control Panel or start Add/Remove Programs.

As this is a home machine, I am the admin. So something has changed permissions or user settings....I'm assuming it was the worm. I'm not savvy enuf to know what to do about this. And of course, I may still have remnants of the worm.

Any suggestions would be much appreciated.

As of a couple of days ago, I un and reinstalled AdAware so the AdWatch problem/error message stopped. Still have the restriction on programs.


Here is the hijackthis log:

"
Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 10:41:33 PM, on 1/23/2008
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16574)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\Program Files\Windows Defender\MsMpEng.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Common Files\Symantec Shared\ccSetMgr.exe
C:\Program Files\Common Files\Symantec Shared\ccEvtMgr.exe
C:\Program Files\Common Files\Symantec Shared\ccProxy.exe
C:\Program Files\Common Files\Symantec Shared\SNDSrvc.exe
C:\Program Files\Common Files\Symantec Shared\SPBBC\SPBBCSvc.exe
C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
C:\WINDOWS\system32\LEXBCES.EXE
C:\WINDOWS\system32\spoolsv.exe
C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
C:\WINDOWS\system32\bgsvcgen.exe
C:\Program Files\Diskeeper Corporation\Diskeeper\DkService.exe
C:\Program Files\Common Files\Symantec Shared\DJSNETCN.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\MDM.EXE
C:\Program Files\Yahoo!\NAV\navapsvc.exe
C:\Program Files\Yahoo!\NAV\IWP\NPFMntor.exe
C:\WINDOWS\system32\nvsvc32.exe
C:\WINDOWS\system32\svchost.exe
c:\program files\lenovo\system update\suservice.exe
C:\Program Files\Common Files\Lenovo\tvt_reg_monitor_svc.exe
C:\Program Files\Lenovo\Rescue and Recovery\rrservice.exe
C:\Program Files\Common Files\Lenovo\Scheduler\tvtsched.exe
C:\Program Files\Common Files\Lenovo\Logger\logmon.exe
C:\WINDOWS\Explorer.exe
C:\WINDOWS\system32\ICO.EXE
C:\Program Files\Common Files\Lenovo\Scheduler\scheduler_proxy.exe
C:\PROGRA~1\Lenovo\LENOVO~2\LPMGR.exe
C:\Program Files\Common Files\Symantec Shared\ccApp.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\Messenger\msmsgs.exe
C:\Program Files\Adobe\Acrobat 6.0\Distillr\acrotray.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\system32\Pelmiced.exe
C:\Program Files\Common Files\Symantec Shared\Security Console\NSCSRVCE.EXE
C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
C:\Program Files\Lavasoft\Ad-Aware 2007\Ad-Watch2007.exe
C:\PROGRA~1\MICROS~2\OFFICE11\OUTLOOK.EXE
C:\Program Files\Microsoft Office\OFFICE11\WINWORD.EXE
C:\Program Files\Internet Explorer\iexplore.exe
C:\Program Files\HijackThis\HijackThis.exe

R3 - URLSearchHook: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
F2 - REG:system.ini: Shell=Explorer.exe C:\WINDOWS\system32\printer.exe
O2 - BHO: DriveLetterAccess - {5CA3D70E-1895-11CF-8E15-001234567890} - C:\WINDOWS\system32\dla\tfswshx.dll
O2 - BHO: Google Toolbar Notifier BHO - {AF69DE43-7D58-4638-B6FA-CE66B5AD205D} - C:\Program Files\Google\GoogleToolbarNotifier\2.0.1121.2472\swg.dll
O3 - Toolbar: Adobe PDF - {47833539-D0C5-4125-9FA8-0819E2EAAC93} - C:\Program Files\Adobe\Acrobat 6.0\Acrobat\AcroIEFavClient.dll
O3 - Toolbar: Yahoo! Toolbar - {EF99BD32-C1FB-11D2-892F-0090271D4F88} - C:\Program Files\Yahoo!\Companion\Installs\cpn\yt.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar3.dll
O4 - HKLM\..\Run: [NvCplDaemon] "RUNDLL32.EXE" C:\WINDOWS\system32\NvCpl.dll,NvStartup
O4 - HKLM\..\Run: [nwiz] nwiz.exe /installquiet /keeploaded /nodetect
O4 - HKLM\..\Run: [High Definition Audio Property Page Shortcut] HDAShCut.exe
O4 - HKLM\..\Run: [Mouse Suite 98 Daemon] ICO.EXE
O4 - HKLM\..\Run: [TVT Scheduler Proxy] "C:\Program Files\Common Files\Lenovo\Scheduler\scheduler_proxy.exe"
O4 - HKLM\..\Run: [LPManager] C:\PROGRA~1\Lenovo\LENOVO~2\LPMGR.exe
O4 - HKLM\..\Run: [ccApp] "C:\Program Files\Common Files\Symantec Shared\ccApp.exe"
O4 - HKLM\..\Run: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe
O4 - HKLM\..\Run: [DiskeeperSystray] "C:\Program Files\Diskeeper Corporation\Diskeeper\DkIcon.exe"
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\RunServices: [DJSNetCN] "C:\Program Files\Common Files\Symantec Shared\DJSNETCN.exe"
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [MSMSGS] "C:\Program Files\Messenger\msmsgs.exe" /background
O4 - HKCU\..\Run: [updateMgr] C:\Program Files\Adobe\Acrobat 7.0\Reader\AdobeUpdateManager.exe AcRdB7_0_9
O4 - HKCU\..\Run: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe
O4 - HKUS\S-1-5-18\..\Run: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe (User 'SYSTEM')
O4 - HKUS\S-1-5-18\..\Run: [DWQueuedReporting] "C:\PROGRA~1\COMMON~1\MICROS~1\DW\dwtrig20.exe" -t (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [WinAVX] C:\WINDOWS\system32\WinAvXX.exe (User 'Default user')
O4 - Global Startup: Acrobat Assistant.lnk = C:\Program Files\Adobe\Acrobat 6.0\Distillr\acrotray.exe
O4 - Global Startup: Adobe Gamma Loader.lnk = C:\Program Files\Common Files\Adobe\Calibration\Adobe Gamma Loader.exe
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Restrictions present
O6 - HKCU\Software\Policies\Microsoft\Internet Explorer\Control Panel present
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {0045D4BC-5189-4b67-969C-83BB1906C421} - C:\Program Files\Lenovo\Client Security Solution\tvtpwm_ie_com.dll
O9 - Extra 'Tools' menuitem: ThinkVantage Password Manager... - {0045D4BC-5189-4b67-969C-83BB1906C421} - C:\Program Files\Lenovo\Client Security Solution\tvtpwm_ie_com.dll
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_02\bin\ssv.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.DLL
O9 - Extra button: System Update - {DA320635-F48C-4613-8325-D75A933C549E} - C:\Program Files\Lenovo\System Update\sulauncher.exe
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O14 - IERESET.INF: START_PAGE_URL=http://www.lenovo.com/welcome/3000desktop
O16 - DPF: {6E32070A-766D-4EE6-879C-DC1FA91D2FC3} (MUWebControl Class) - http://www.update.microsoft.com/microsoftu...b?1187617050718
O20 - AppInit_DLLs: C:\WINDOWS\system32\sulimo.dat C:\PROGRA~1\Google\GOOGLE~1\GOEC62~1.DLL
O23 - Service: Ad-Aware 2007 Service (aawservice) - Lavasoft AB - C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
O23 - Service: Apple Mobile Device - Apple, Inc. - C:\Program Files\Common Files\Apple\Mobile Device Support\bin\AppleMobileDeviceService.exe
O23 - Service: Automatic LiveUpdate Scheduler - Symantec Corporation - C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
O23 - Service: B's Recorder GOLD Library General Service (bgsvcgen) - B.H.A Corporation - C:\WINDOWS\system32\bgsvcgen.exe
O23 - Service: Symantec Event Manager (ccEvtMgr) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\ccEvtMgr.exe
O23 - Service: Symantec Internet Security Password Validation (ccISPwdSvc) - Symantec Corporation - C:\Program Files\Yahoo!\NPF\ccPwdSvc.exe
O23 - Service: Symantec Network Proxy (ccProxy) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\ccProxy.exe
O23 - Service: Symantec Settings Manager (ccSetMgr) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\ccSetMgr.exe
O23 - Service: Diskeeper - Diskeeper Corporation - C:\Program Files\Diskeeper Corporation\Diskeeper\DkService.exe
O23 - Service: Symantec Licensing Detect Internet Connection (DJSNETCN) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\DJSNETCN.exe
O23 - Service: Google Updater Service (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: iPod Service - Apple Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: LexBce Server (LexBceS) - Lexmark International, Inc. - C:\WINDOWS\system32\LEXBCES.EXE
O23 - Service: LiveUpdate - Symantec Corporation - C:\PROGRA~1\Symantec\LIVEUP~1\LUCOMS~1.EXE
O23 - Service: Norton AntiVirus Auto-Protect Service (navapsvc) - Symantec Corporation - C:\Program Files\Yahoo!\NAV\navapsvc.exe
O23 - Service: Norton AntiVirus Firewall Monitor Service (NPFMntor) - Symantec Corporation - C:\Program Files\Yahoo!\NAV\IWP\NPFMntor.exe
O23 - Service: Norton Protection Center Service (NSCService) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\Security Console\NSCSRVCE.EXE
O23 - Service: NVIDIA Display Driver Service (NVSvc) - NVIDIA Corporation - C:\WINDOWS\system32\nvsvc32.exe
O23 - Service: IBM PSA Access Driver Control (PsaSrv) - Unknown owner - C:\WINDOWS\system32\PsaSrv.exe
O23 - Service: Symantec AVScan (SAVScan) - Symantec Corporation - C:\Program Files\Yahoo!\NAV\SAVScan.exe
O23 - Service: Symantec Network Drivers Service (SNDSrvc) - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\SNDSrvc.exe
O23 - Service: SPBBCSvc - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\SPBBC\SPBBCSvc.exe
O23 - Service: System Update (SUService) - - c:\program files\lenovo\system update\suservice.exe
O23 - Service: Symantec Core LC - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
O23 - Service: ThinkVantage Registry Monitor Service - Unknown owner - C:\Program Files\Common Files\Lenovo\tvt_reg_monitor_svc.exe
O23 - Service: TVT Backup Service - Lenovo Group Limited - C:\Program Files\Lenovo\Rescue and Recovery\rrservice.exe
O23 - Service: TVT Scheduler - Lenovo Group Limited - C:\Program Files\Common Files\Lenovo\Scheduler\tvtsched.exe
O23 - Service: YPCService - Yahoo! Inc. - C:\WINDOWS\system32\YPCSER~1.EXE

--
End of file - 10759 bytes

As there was not Application Data file, I attached the most recent AdAware scan log. Hope this helps.