Ok, this log looks much better BUT...I still do not see an active anti-virus program OR a firewall on the computer...ABSOLUTE MUSTS
There are several very good FREE anti-virus programs available and linked in PROTECT YOURSELF FROM MALWARE: Tools & Tips

You absolutely MUST download, install, update and USE one of those free anti-virus programs to keep your computer clean. For a Firewall you can either choose to enable the built in Windows Firewall or choose one of those linked on the above thread. But until you begin protecting your computer with these two items you WILL be infected again.

Another thing you have to do is go to Add/Remove and Uninstall all of the old versions of Java on the machine, you are showing that you have 7 old versions on the machine. You need to install the newest version which is SunJava version 6 update 5
Choose the offline download. Download to the desktop, uninstall the old versions, install the new one and verify the installation by going here