The items shown as missing entries were shown as missing entries because you used an out of date version of HiJackThis, NOT because they have been removed from the computer. It was not able to scan Windows 7 properly. You would have received the same results if the computer had been a Vista computer, that version of HJT does not scan properly on any system after XP.
Secondly, HiJackThis is NOT a removal program. It will FIX incorrect entries, it will stop auto starts, but it doesn't remove anything except Active X items, it will not remove services.
When you fix a O23, or Services entry, which is where your "dreaded" red entries a located, Hijackthis will change the startup for this service to disabled, stop the service, and then ask the user to reboot. It will not delete the actual service from the registry or the file it points to.
Whether you believe the files are as you say cr*apware, not all of those listed ARE cr*pware. They are legitimate files and many of them should not have been removed if you actually did so.
I am very familiar with blackviper and have used his lists for nearly 4 years.
I agree with you as far as your friends ISP being the likely problem for the sporadic internet losses. But removing files or programs based on an out of date HJT scan is just not what you should do. Stop them from running, maybe, but full removal from a brand new computer, sorry, but I wouldn't want you working on my brand new computer. What you consider cr*pware he may very well want to use.

You can have your friend post the log, but obviously you don't believe a word I have said and doubt even the creator of HJT when he says he wouldn't trust a parser to decide what to do so I doubt that you will allow him to believe what I say anyway.
I will read the log if I have the time but I know any advice I give will be ignored.