Ok, looks like it worked this time .

But you will have to reset your Sytem Restore again to hopefully, finally, and for the last time get rid of these pests!

The logs do look clean now, with the exception of this most recent restore point.

You have some unnecessary starts like
Adobe Reader Speed Launcher
Adobe Photo Downloader
TkBellExe...Real Player auto update
MSMSGS...this is Windows Messenger NOT MSN Messenger, which also is starting unnecessarily
DellSupport
Yahoo! Pager
MySpaceIM
Yahoo! Desktop Search System Tray
Microsoft Office
ALL of the above can be run manually to keep the drain off of system resources.

these should be controlled with Mike Lin's StartUP Control Panel
rather than msconfig. Also some good tips HERE on controlling XP Services.

Also you DO need to install SpywareBlaster
Install, update and enable everything including restricted sites portion.
I would also recommend using Immunize feature on SpyBot too.