Bingo you got it this time! SPD was correct as usual!
The log looks pretty good.
I would recommend you uninstall Xsoft. It is not needed. I also recommend that you install SpywareBlaster. Great FREE program, a must today. Prevent the installation of ActiveX-based spyware, adware, browser hijackers, dialers, and other potentially unwanted software.
Block spyware/tracking cookies in Internet Explorer and Mozilla/Firefox.
Restrict the actions of potentially unwanted sites in Internet Explorer.
Just download, update and enable.This program DOES NOT run in the background.

I also recommend that you use Mike Lin's StartUpControlPanel to control your autostarts. Free program which, after download and install makes it super easy to disable or re-enable auto starting programs.

Here is a list of the items showing in your log which auto-start and are unnecessary for the smooth running of the computer. They all can be run manually.

ATIModeChange>>>System Tray icon to access ATI graphics card settings and the Hydravision Desktop Manager
SetDefPrt>>>Used to set a Brother MFC printer/copier/scanner as the default printer after installation
BJCFD>>>BroadJump Client Foundation. Broadband troubleshooting software installed by various companies. Not required and you can remove it via Add/Remove programs
IPInSightMonitor 01>>>Installed with Verizon DSL accounts. IP Insight is a Quality of Service monitor and diagnostic tool that isn't required
Gene USB Monitor>>>Monitors USB ports for insertion of Sandisk USB flashdrives.
SSBkgdUpdate>>>ScanSoft OmniPage auto updater. Can be disabled using the main program's options. Do manual updates
PaperPort PTD>>>"PaperPort" software associated with scanners, can be run manually
IndexSearch>>>Associated with PaperPort scanner software from ScanSoft
QuickTime Task>>>System Tray access to Apple's "Quick Time" viewer from version 5 onwards
!AVG Anti-Spyware>>>Background scanner of AVG Anti-spy. Unless you purchased the program this portion will cease to function anyway after 30 days. I recommend disabling but keep the program itself for manual scanning. Even though it is the free version it's definitions CAN be updated and the program can be used to scan and remove malware/spyware/trojans.
swg>>>Related to GoogleToolbarNotifier from Google Inc. Disabling or enabling it is down to user preference. Note: Located in a subfolder of C:\Program Files\Google\GoogleToolbarNotifier
HijackThis startup scan>>>Totally unnecessary. Turn this off.
Microsoft Office>>>unnecessary, can very easily be run manually
WinZip Quick Pick>>>Added with WinZip version 8.1. Really unnecessary. You can right-click and close it - choosing to not re-load it at start-up
Ding.exe>>>process associated with DING! from Southwest Airlines. ding.exe is not a critical component
QuickBooks Update Agent>>>Associated with Intuit's Quickbooks but not required. Possibly to do with the payroll update service but you're prompted to check for updates when appropriate whether this is running or not
SmartUI.exe>>>This is a component of Scansoft's PaperPort. PaperPort allows you to share paper, PDF, and digital documents over a network. Users choice whether to run all the time or not.
Once you get those programs installed and disable the autostarts then I would set a new Restore Point by right clicking My Computer, choose Properties. Then click on the System Restore Tab and place a checkmark in Turn Off System Restore. Click OK. Your System Restore will shut down. Then go back in and remove the checkmark to turn it back on. You will then have a new, clean restore point.
Judy