Get rid of that BitTorrent program running at Start Up. Stop File Sharing. Spybot IS on the computer because your log shows that SpyBot TeaTimer IS running at Start up and in the background. Turn that off. Also turn off AdAware 2007, it is running in the background. Running these two all the time can make it hard to clean the machine. Run SpyBot and AdAware for scanning ONLY but not in the background. Go into msconfig and set it to Normal Start Up so that we can see what is on the computer you have disabled.
Once you have turned off those programs then run the steps as given again and post the new logs.