ok let's do this the hard way.
close all programs.
alt + ctrl + delete
Under the processes tab end all instances of svshost.exe
see http://www.liutilities.com/products/wintaskspro/processlibrary/svshost/ for more details.
Please be careful as there is a legitimate process called svchost.exe, so make sure you delete the right one.
Then tick the following entries
O4 - HKLM..\Run: [Microsoft Internet Updater] msinternat.exe
O4 - HKLM..\Run: [Service Update] svshost.exe
O4 - HKLM..\RunServices: [Microsoft Internet Updater] msinternat.exe
O4 - HKLM..\RunServices: [Service Update] svshost.exe
O4 - HKCU..\Run: [Microsoft Internet Updater] msinternat.exe
O4 - HKCU..\Run: [Service Update] svshost.exe
O4 - HKLM..\Run: [UserFaultCheck] %systemroot%\system32\dumprep 0 -u
--> see http://es.trendmicro-europe.com/enterprise/security_info/ve_detail.php?id=66566&VName=WORM_RBOT.YP&VSect=O for more details of msinternat.exe. The filename there is slightly different so maybe it's a new variant. Basically you want to delete all the entries in the 04 section that refer to svshost.exe and msinternat.exe.
Lastly, reboot into safe mode by repeatedly pressing f8 during boot up, then make sure you can see hidden files and folders, http://www.xtra.co.nz/help/0,,4155-1916458,00.html#5 then search for svshost.exe and msinternat.exe, and delete if found.
Then reboot and post a new log.
Lastly go to the windows update site and get up to date.