DHCP problem with windows XP

I have been wrestling with a problem for little over a week. Here are the original issues:
Originally the ocmputer was running horribly due to spyware. I had also run spyware checks with Spybot S&D1.3, and Bullet Proof Soft spyware remover. Removed around 1000 spyware components, including coolwebsearch. After this I ran CWShredder, and found some more. Next I installed spyguard, spyblaster, and spy-ad. Spyguard was going crazy blocking homepage change attempts. It was later discovered that these and some popup attempts were being caused by the LookToMe spyware/adware. Ran the KillMeTo to removed LookToMe. After a reboot of my system LookToMe still exists on the computer. But now when I go to services.msc all of the services are disabled with the exception of RPC and a couple others. I used the windows XP default services toll obtained from http://www.blackviper.com. After another reboot the computer shuts down right after entering the password to login (no count down). I was able to get around this by going into safe mode and running msconfig and putting the computer into diagnostic mode till I had the problem diagnosed. I eventually found that every time I enabled and started the server process in services.msc the computer would shutdown instantly (no count down). I ran AVG antivirus and found 4 viruses: downloader.agent.AI(2), downloader.QDown.C(1) and something LookMe(1). I also noticed that LookToMe was STILL RUNNING, and also found a "better fix" this one actually removed it, (or at least as far as I can see.) This software is put out by Option^Explicit Software and is called VX2Finder.exe. After this I went through the manual procedures to unistall and repair winsock2. So far no luck. It is now obtaining a class B ip address (169.254.78.36) instead of a class C (192.168.0.*), it cannot browse, or ping anything.
Details on the procedures I used can be obtained at http://www.experts-exchange.com/Operati ... 66809.html. Next I reconfigured all networking components. Ran lspfix. Followed steps on Q299357, and Q314067. Still having the same problems. From here I decided to run windows xp repair. Still no success. I am now at a point that I do not know what else to know, and hoping by submitting this to a larger group. I would realy appreciate any comments that you may have, that could solve or help guide me to a solution.

Thanks

Can I ask a really obvious question? Do you have Kazaa installed and if so, did you uninstall it as well in that most excellent troubleshooting process? If not Kazaa, I'm thinking that you have some proggy that is inviting the spyware/adware that you haven't yet given up. Obviously whatever it is is causing you more headaches than it's worth. Nix it and enjoy your computing experience.

Another obvious question but you didn't accidently disable DHCP client did you?

Personally if it were me, with that many viruses & spyware items i'd be looking at formatting & starting again!

S

Yeah that computer has a real dirty drive. Sounds like there are so many problems there it would take a grip to get them out. I am not a big fan of the 3 r's restart, reboot, and reinstall but it is clear that you don’t keep a eye on what is going on. So my reply would have to be back up and reinstall windows. If your tired of windows try Linux it is a little more complicated but once you learn it your in business.

OK Kazaa was not installed, and DHCP is not disabled. Backup and formatting is my last option, because this computer does not belong to me. But I think that is going to be my only option. I was hoping that I may have been overlooking something. If you have any other suggestions, I will check back with here after the backup.