Guys, thanks for all the input.
While my friend's system is probably not fully up to date with all the MS security patches, I do agree with Eddy that Avast should have caught the Bear. Avast was installed with all of the default settings. During the setup it correctly identified IE and Netscape on his computer and was alerting him to other bugs that it found over the months, so he told me.
I sent him Symantec's Bear detect and repair executable, fxbgbear.exe which he ran, but it found nothing. He ran it from Normal mode, not in Safe mode. I'm not sure he has the knowledge to do this. I sent him instructions but he is not very computer literate. Avast keeps alerting him to the fact that the trojan is still on his system.
He's in Florida for about 4 months so he doesn't have access to his installation CDs and the downloads of IE 6.0 are so massive (75 MB) that I'm not sure he wants to do it over his dialup connection. Even if he did decide to download IE, if his system is not clean, he will wind up with the same problem after the reinstall.
One other point. The error message when he starts up IE is that the executable can't be found. When he trys Netscape, the program starts but then it complains that it can find no connection. Over the phone, I walked him through the checking of all of his connection settings and they are correct. His Outlook Express is able to connect and he receives and can send emails.
Any other suggestions.
Paul