Ok gln,
Take a deep breath, and we can begin again. You are correct in your findings about the file that Zone Alarm blocked. BUT it also could be a legitmate legal file. Since it was found in the C:\Program Files\DISC\ it could very well be a part of that program, which as you well know is a "Drop and Play" gaming program. Not being a gamer myself I am not certain exactly what that is, but I do know this file could be part of that and NOT a worm or trojan.

But to be safe BEFORE you run the Kaspersky online scan I would like you to do the following;

1. Download SDFix and save it to your Desktop.
2. Double click SDFix.exe and it will extract the files to %systemdrive%
(Drive that contains the Windows Directory, typically C:\SDFix)

3. Reboot into Safe Mode`:-
Using the F8 Method
Restart your computer.
When the machine first starts again it will generally list some equipment that is installed in your machine, amount of memory, hard drives installed etc. At this point you should gently tap the F8 key repeatedly until you are presented with a Windows XP Advanced Options menu.
Select the option for Safe Mode using the arrow keys.
Then press enter on your keyboard to boot into Safe Mode.

4. Open the extracted SDFix folder and double click RunThis.bat to start the script.
Type Y to begin the cleanup process.

It will remove any Trojan Services and Registry Entries that it finds then prompt you to press any key to Reboot.
Press any Key and it will restart the PC.

When the PC restarts the Fixtool will run again and complete the removal process then display Finished, press any key to end the script and load your desktop icons.

Once the desktop icons load the SDFix report will open on screen and also save into the SDFix folder as Report.txt
(Report.txt will also be copied to Clipboard ready for posting back on the forum).

Finally paste the contents of the Report.txt back here as soon as you complete it.

Now rest assured, if no trojans are found then the program will NOT change anything. The report will read no trojans found.
IF this file IS found to be worm_sdbot.ayp then it will remove it and any repair registry entries it may have made also.

I also have gone through your list of Registry fixes and it appears to me the fixes made were to those registry entries associated with all those anti-virus programs and Spyware Doctor. Don't get rid of the backups just yet, keep them until we can be sure the computer will run without problems.
Do that SDFix and post the log for me OK?
Judy