Avast detected "Trojan Horse WIN32-VB-YN [trj]" and yes, it infected C:\windows\system32\cahyqprp.exe\[upx] and C:\systemvolumeinformation\..\[upx] as well as ewido finding several medium risk spyware. The odd thing is, the problem appears to have no consistency. At this moment, everything seems normal but Internet Explorer and all the problems associated can freeze up without notice as mentioned before.
Also, while infected, I couldn't boot up and the error message said unable to find Windows\config\sys but after several tries, it finally did boot up.
The trojan does not apparently re-appear after reboot.
I'm using the windows XP firewall.
I don't know about info in the windows events?
Thanks for the replies