Log looks good, but what firewall are you using?
Delete that quarantined file that the NAV found. You don't need it.
You have some unnecessary start up items which can be run manually and are not needed for the smooth running of the system

I recommend using Mike Lin's StartUpControl Panel

Download and install it. Once installed you will find it in your Control Panel. Icon looks like a computer and says Start Up.
Double Click to open and then go through the various tabs and remove the checkmarks from the items below. None of these are needed to auto start, all many be run manually and all can be disabled so that they do not take up necessary resources.
Here are those not needed running automatically at start up;

ehTray - This startup loads a system tray icon that allows you to control various aspects of Media Center.

igfxtray- Quick access to the control panel via a System Tray icon for graphics

igfxpers - Associated with the Common User Interface module for Intel graphics cards

ISUSPM Startup - InstallShield Update Service Scheduler. Automatically searches for and performs any updates to the software so you’re always working with the most current version

ISUSScheduler - InstallShield Update Service Scheduler.

QuickTime Task - System Tray access to Apple's "Quick Time" viewer from version 5 onwards

gnotify.exe - Google Mail Notifier Alerts you when you have new Gmail messages

MSKDetectorExe - McAfee SpamKiller - this is no longer available. I would uninstall it. Use Mailwasher instead.

iTunesHelper - Installed with Apple's iTunes for Windows. Uses ~3-4MB of memory and if disabled in MSCONFIG or deleted from the registry it will re-instate itself after running iTunes a few times. If it restarts after using, then go back into Mike Lin's program and remove the checkmark.

Google Desktop Search - a desktop search application that provides full text search over your email, computer files, chats, and the web pages you've viewed. Really not required.

SunJavaUpdateSched - Checks for java updates. Do this manually, half the time it doesn't work anyway.
swg - Added by the Google ToolBar for Internet Explorer. This program will notify you when you attempt to change the Internet Explorer search engine to something other than Google and asks if you would like to allow the change

MsnMsgr - MSN Messenger utility. If you don't use MSN Messenger, this can be annoying. Available via Start -> Programs. Go to MS Messenger > Tools > Options > Preferences and uncheck "Run this program when Windows starts"

updateMgr - Adobe\Acrobat 7.0 - this obviously doesn't work, current version is 8.1.

Adobe Reader Speed Launch - supposedly makes reader available immediately if needed. Can easily be run manually...adds maybe a few seconds to launch if not auto started.

Digital Line Detect - detects whether you are plugged into a digital phone line. Can easily be run manually.

Kodak EasyShare software - Whether or not you need to run this program on startup must be decided by you. If you feel that you want this program starting automatically so that you have it available as needed, then do not disable it.

KODAK Software Updater - Software updater for Kodak Easyshare digital cameras, can be done manually.

I also want you to download, install, update and enable SpywareBlaster
A MUST have tool we always recommend.
It will do the following;
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.
Be sure to enable it's Restricted Sites portion of the program.
What is great about this little program, beside the strong protection it offers is that it doesn't run in the background. Just keep it updated weekly.

You also need to set a new Restore Point.
To do this Right Click My Computer. Choose Properties, System Restore. Place a checkmark in Turn off System Restore. System Restore will shut down, erasing all old restore points.
Reboot the system. Once the reboot has taken place go back in and remove that checkmark from Turn off System Restore. This will turn System Restore back on with a new, clean restore point.