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A Qhosts variant Hosts file changer's file removed, and infection that was held harmless in System Restore (System Volume Information). And then a malware file that somehow had gotten past scans you had done there. Let's check to make sure the Hosts file is intact now.
Open HijackThis and click Config - Misc Tools - Open hosts file manager. It should have some MS verbage, some examples, and then a short list beginning with this:
127.0.0.1 localhost
If by chance HijackThis provides a message stating it needs to create a default Hosts file go ahead and allow that, then post back here after if the Hosts file is okay.
Also right click My Computer, left click Explore, and use the plus + symbols to navigate to the following hilighted folders and delete it:
c:\documents and settings\All Users\Application Data\gra
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