cauzomb is correct, this entry,
F2 - REG:system.ini: Shell=Explorer.exe C:\WINDOWS\Config\lsass.exe is indicative of the Trojan.Win32.VB.bhu
one of several on your system I am sorry to say.

A very undesireable program running in the background AND auto starting is
Bittorrent, a file sharing program which is very likely how many of these infections entered the system. Another Undesireable program on the machine is another file sharing program Ares 2.0.9.
File sharing is not something we condone here and will not offer help in doing. If you want to get the machine clean then these programs will have to come off.

You also are running portions of two anti-virus programs AVG7, which will soon be out of date.
The other anti-virus program showing in your logs and in your uninstall list, meaning it was not properly uninstalled, is Norton/Symantec. Having two anti-virus programs running at the same time on the same machine is an absolute no-no.
You are also not running a firewall, an absolute must also. Please enable the built in Windows Firewall. If you want to choose another one later that is fine but for now enable that one.
Also, please turn off AdAware2007 until all of these fixes are complete. Having that running all the time in the background can interfere with any fixes attempted. This is running automatically at start up via Services, you can disable it there. There are other services you also need to STOP and Disable while you are there;

To get to Services go to Start, Control Panel, Administrative Tools, Services...Double Click that to open.

When that opens scroll through the list and STOP and Disable ALL of the following;

Ad-Aware 2007 Service (aawservice) - Lavasoft AB - C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
Ares Chatroom server (AresChatServer) - Ares Development Group - C:\Program Files\Ares\chatServer.exe
Automatic LiveUpdate Scheduler - Symantec Corporation - C:\Program Files\Symantec\LiveUpdate\ALUSchedulerSvc.exe
Service: LiveUpdate - Symantec Corporation - C:\PROGRA~1\Symantec\LIVEUP~1\LUCOMS~1.EXE
Service: LiveUpdate Notice Service - Unknown owner - C:\Program Files\Common Files\Symantec Shared\PIF\{B8E1DD85-8582-4c61-B58F-2F227FCA9A08}\PIFSvc.exe" /m "C:\Program Files\Common Files\Symantec Shared\PIF\
Symantec Core LC - Symantec Corporation - C:\Program Files\Common Files\Symantec Shared\CCPD-LC\symlcsvc.exe
When that is complete and ALL of those entries are disabled and STOPPED close out services and begin the steps below.

In order to begin to get this computer clean you must first do this;

Go into Add/Remove and UNINSTALL all of the following;

Ares 2.0.9
BitTorrent 5.0.9
(The Java entries showing below are unnecessary and can be removed leaving on the latest versions on the computer.)
J2SE Runtime Environment 5.0 Update 10
J2SE Runtime Environment 5.0 Update 11
J2SE Runtime Environment 5.0 Update 6
Java(TM) 6 Update 2
Java(TM) 6 Update 3
Java(TM) SE Runtime Environment 6
LiveUpdate 3.0 (Symantec Corporation)
LiveUpdate Notice (Symantec Corporation)
Symantec KB-DocID:2003093015493306

Some of these uninstalls may require the rebooting of the computer to complete, if directed to reboot then do so and move onto the next uninstall on the list.
After you have uninstalled all of the above then please run the ESET scanner again and please allow it to fix whatever is found.
Also run at least one more of the online scans listed in the sticky and have it fix whatever is found.
Update the MalwareBytes program and run it again also, having it fix whatever is found. Save the log for this new scan and all of the others above.
Reboot the computer.
Run HJT again, save the log and post back here with that new log, the new MalwareBytes log and the logs from the other online scans. We will then decide the best way to proceed.
Judy