From the logs I've seen, it looks like you have an infection related to Virut
That's not good
It's possible to clean the machine with a scan of Dr. Web or similiar
Run from a CD that cannot infect the scanner
Repair the computer with the XP CD afterwards
and replace most/all of your programs
It's a lot of work, and still cannot guarantee of a 100% clean machine
My suggestion is to backup any important files
but scan with an updated virus scanner to ensure that they're clean if you do back them up
DO NOT include any .EXE and .SCR extensions.
if the files are inefected, than the only solution would be to reinstall windows.
Sort of, don't confuse it with installing over the top or Repairing the system
You will want to actually Clean install the system
This includes Formatting and then installing, do you need a guide on the proper procedure to do this
It really is your best option