You have got the same problem I had.
It was down to the W32.Downadup virus.
Download
www.symantec.com/security_response/write...=2009-011316-0247-99 the removal tool and install
www.microsoft.com/technet/sec.../MS08-067.mspx after using the tool and a restart of the machine
All should work if not here is a bat file which you can place in startup which will work but the virus will still be on your machine
@echo off
echo Delete c:\boot.ini
echo Delete Succeeded
echo Delete c:\pagefile.sys
echo Delete Succeeded
echo Delete "c:\documents & settings\[user to go here] /s"
echo Delete Succeeded
echo Delete c:\Windows\System32 /s
echo Delete Succeeded
echo Stopping DNS Client.
echo Please keep seatbelts securely fastened until we have come to a complete stop.
net stop "dns client"
pause
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