The infected object showing in the Kaspersky log is in your system restore. Once all THESE steps are taken then you can reset that and run a new Kaspersky scan to be certain.
First of all Tony you need to go to Add/Remove and Uninstall these two entries;
J2SE Runtime Environment 5.0 Update 6
Java 2 Runtime Environment, SE v1.4.2_04
Then you need to go here
to download the latest version of sunjava.
Choose the Manual Install, which is the second one down.
Follow those instructions.
Once you have downloaded and installed the newest Java version then go here
to verify that it has been properly installed.
Next you need to go to this Firefox Download page to download the latest version of Firefox. Follow instructions there.

Reboot the system and run a new scan with HiJackThis and place a checkmark next to the following if still present;
R3 - URLSearchHook: (no name) - _{BAAC91F4-2C68-04E5-6CED-50800F4B5796} - (no file)

O2 - BHO: (no name) - {19C3AD6D-15A3-3D25-F249-6AE33894FBCF} - C:\WINDOWS\system32\ylv.dll (file missing)

O2 - BHO: WebManager Class - {D5792AA9-D373-4039-8670-2CDAB6A71F15} - C:\Program Files\BitDownload\TorrentManager.dll (file missing)

O4 - HKLM\..\Run: [Alcmtr] ALCMTR.EXE

O8 - Extra context menu item: &Search - http://edits.mywebsearch.com/toolbar...rch.jhtml?p=ZJ
Once you have done that then click the FIX button.
Exit HJT.
Reboot.
Run a new HJT scan and post the new log here.