The lsdelete is being triggered by the BootExecute key in the registry....I saw it there in the ComboFix log. You can remove it with Start > Run... > "regedit" [enter] then search for it and delete it. It should be under a heading called BootExecute IIRC.
I think FF is probably running goofy due to odd settings from the virus. I think there's a way to clear them out, but I usually use Opera, so I'm not sure right off the top of my head.
If you go to the Control Panel, then System, then the Automatic Updates tab, if you set it to "notify me but don't automatically download or install" you should almost immediately get the yellow shield in the system tray ready to serve updates.
Out of curiosity, which update was it looking for? I don't think IE8 requires much more than XP SP2......
I think the red circle/white x is leftovers from malware. Go to "Internet Options" (hopefully from the Control Panel, can also be accessed from within IE) and go to the tab most to the right. There should be a button to set everything back to defaults. Ya might wanta do that.....
According to MBAM, we're dealing with Vundo here. Realize that Vundo is a highly destructive virus, and getting everything "exactly right" again may take some doing. That is, of course, one of the reasons why a lot of people just go straight for the "nuclear option" whenever something like this happens. I think that's a bit of a wimpy approach, myself.......it's much more interesting to break its back with Linux, kill it outright with ComboFix, and then clean up after it with half-a-dozen other tools.
