I did not disable ANYTHING using msconfig, I only went to the boot tab and selected "Safe Boot" what startup items are you talking about??
This entry shows that msconfig was being used;
O4 - HKLM\..\Run: [MSConfig] C:\WINDOWS\PCHealth\HelpCtr\Binaries\MSConfig.exe /auto
So, does this mean msconfig was being used at the time the scan was run? Yes. Go back in there and make sure that everything was enabled.
When asked to boot to Safe Mode don't use msconfig, use the F8 method.

After AVG Anit Spy found 9 infections, they were Quarantined, then I went in there and deleted them.
No they were NOT quarantined. Note your log;
C:\WINDOWS\system32\config\systemprofile\Local Settings\Temporary Internet Files\Content.IE5\OHMFOLMF\Setup104[1].exe -> Adware.Cdnup : No action taken.
C:\WINDOWS\temp\03882731.exe -> Adware.Cdnup : No action taken.
C:\WINDOWS\temp\Setup104.exe -> Adware.Cdnup : No action taken.
C:\WINDOWS\system32\config\systemprofile\Local Settings\Temporary Internet Files\Content.IE5\OHMFOLMF\dodolook017[1].exe -> Adware.Cinmus : No action taken.
C:\WINDOWS\temp\dodolook017.exe -> Adware.Cinmus : No action taken.
HKLM\SOFTWARE\Microsoft\Internet Explorer\Extensions\{c95fe080-8f5d-11d2-a20b-00aa003c157a} -> Adware.Generic : No action taken.
C:\Program Files\NewDotNet -> Adware.NewDotNet : No action taken.
C:\Program Files\Common Files\{C8137B09-06FC-1033-0907-030309050001}\Update.exe -> Adware.Softomate : No action taken.
C:\Program Files\Common Files\{C8137B09-06FC-1033-0907-030309050001}\system.dll -> Adware.Softomate : No action taken.
C:\WINDOWS\system32\config\systemprofile\Local Settings\Temporary Internet Files\Content.IE5\G52JK96B\tdsetup[1].exe -> Adware.Zhongsou : No action taken.
C:\WINDOWS\temp\tdsetup.exe -> Adware.Zhongsou : No action taken.
C:\WINDOWS\system32\msprivsd.dll -> Downloader.Small.cgu : No action taken.
C:\Documents and Settings\LocalService\Cookies\balbinka@fastclick[2].txt -> TrackingCookie.Fastclick : No action taken.
If they had been quarantined the entries would have read this way;
Cleaned (quarantined) or Cleaned with backup (quarantined).
Yours clearly say No Action Taken...meaning No Action Taken.