Pop Up Virus??

I have an annoying pop up that comes from some ad server. I use Firefox but this opens up IE7 and trys to display a website. It tells me in an alert box that i have viruses and i need to clen my PC. I use Avast4.8 as viral software (after the attack!!! lesson learnt!). I have used Hijack This and here is the log file.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 03:28:50, on 17/03/2009
Platform: Windows XP SP3 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16791)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Alwil Software\Avast4\aswUpdSv.exe
C:\Program Files\Alwil Software\Avast4\ashServ.exe
C:\WINDOWS\system32\spoolsv.exe
C:\WINDOWS\system32\userinit.exe
C:\Program Files\Common Files\EPSON\EBAPI\eEBSVC.exe
C:\Program Files\Bonjour\mDNSResponder.exe
C:\Program Files\Common Files\InterVideo\DeviceService\DevSvc.exe
C:\Program Files\Common Files\EPSON\EBAPI\SAgent2.exe
C:\Program Files\Analog Devices\SoundMAX\SMAgent.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Alwil Software\Avast4\ashMaiSv.exe
C:\Program Files\Alwil Software\Avast4\ashWebSv.exe
C:\Program Files\e-Campaign Email Bulk Software\groupmanager.exe
C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
C:\Program Files\Microsoft ActiveSync\wcescomm.exe
C:\Program Files\Free Download Manager\FUM\fumoei.exe
C:\Program Files\Free Download Manager\fdm.exe
C:\Program Files\Windows Live\Messenger\MsnMsgr.Exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\AdsGone\AdsGone.exe
C:\PROGRA~1\MICROS~3\rapimgr.exe
C:\Program Files\Windows Live\Messenger\usnsvc.exe
C:\Program Files\Internet Explorer\IEXPLORE.EXE
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

O2 - BHO: RealPlayer Download and Record Plugin for Internet Explorer - {3049C3E9-B461-4BC5-8870-4C09146192CA} - C:\Program Files\Real\RealPlayer\rpbrowserrecordplugin.dll
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.6.0_07\bin\ssv.dll
O2 - BHO: Windows Live Sign-in Helper - {9030D464-4C02-4ABF-8ECC-5164760863C6} - C:\Program Files\Common Files\Microsoft Shared\Windows Live\WindowsLiveLogin.dll
O2 - BHO: FDMIECookiesBHO Class - {CC59E0F9-7E43-44FA-9FAA-8377850BF205} - C:\Program Files\Free Download Manager\iefdm2.dll
O4 - HKLM\..\Run: [H2O] C:\Program Files\SyncroSoft\Pos\H2O\cledx.exe
O4 - HKLM\..\Run: [GroupManager] C:\Program Files\e-Campaign Email Bulk Software\groupmanager.exe
O4 - HKLM\..\Run: [avast!] C:\PROGRA~1\ALWILS~1\Avast4\ashDisp.exe
O4 - HKCU\..\Run: [H/PC Connection Agent] "C:\Program Files\Microsoft ActiveSync\wcescomm.exe"
O4 - HKCU\..\Run: [Free Uploader Oe Integration] C:\Program Files\Free Download Manager\FUM\fumoei.exe
O4 - HKCU\..\Run: [Free Download Manager] "C:\Program Files\Free Download Manager\fdm.exe" -autorun
O4 - HKCU\..\Run: [MsnMsgr] "C:\Program Files\Windows Live\Messenger\MsnMsgr.Exe" /background
O4 - HKCU\..\Run: [UIWatcher] C:\Program Files\Ashampoo\Ashampoo UnInstaller 3\UIWatcher.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKUS\S-1-5-18\..\Run: [CTFMON.EXE] C:\WINDOWS\System32\CTFMON.EXE (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\Run: [CTFMON.EXE] C:\WINDOWS\System32\CTFMON.EXE (User 'Default user')
O4 - Startup: AdsGone.lnk = C:\Program Files\AdsGone\AdsGone.exe
O8 - Extra context menu item: Download all with Free Download Manager - file://C:\Program Files\Free Download Manager\dlall.htm
O8 - Extra context menu item: Download selected with Free Download Manager - file://C:\Program Files\Free Download Manager\dlselected.htm
O8 - Extra context menu item: Download video with Free Download Manager - file://C:\Program Files\Free Download Manager\dlfvideo.htm
O8 - Extra context menu item: Download with Free Download Manager - file://C:\Program Files\Free Download Manager\dllink.htm
O8 - Extra context menu item: E&xport to Microsoft Excel - res://C:\PROGRA~1\MICROS~2\OFFICE11\EXCEL.EXE/3000
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_07\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.6.0_07\bin\ssv.dll
O9 - Extra button: Create Mobile Favorite - {2EAF5BB1-070F-11D3-9307-00C04FAE2D4F} - C:\PROGRA~1\MICROS~3\INetRepl.dll
O9 - Extra button: (no name) - {2EAF5BB2-070F-11D3-9307-00C04FAE2D4F} - C:\PROGRA~1\MICROS~3\INetRepl.dll
O9 - Extra 'Tools' menuitem: Create Mobile Favorite... - {2EAF5BB2-070F-11D3-9307-00C04FAE2D4F} - C:\PROGRA~1\MICROS~3\INetRepl.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~2\OFFICE11\REFIEBAR.DLL
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra button: Upload - {FD4E2FF8-973C-4A19-89BD-8E86B3CFCFE1} - C:\Program Files\Free Download Manager\FUM\fumiebtn.dll
O16 - DPF: {6414512B-B978-451D-A0D8-FCFDF33E833C} (WUWebControl Class) - http://www.update.microsoft.com/wi [...] 2389685158
O16 - DPF: {D27CDB6E-AE6D-11CF-96B8-444553540000} (Shockwave Flash Object) - http://fpdownload2.macromedia.com/ [...] wflash.cab
O23 - Service: avast! iAVS4 Control Service (aswUpdSv) - ALWIL Software - C:\Program Files\Alwil Software\Avast4\aswUpdSv.exe
O23 - Service: avast! Antivirus - ALWIL Software - C:\Program Files\Alwil Software\Avast4\ashServ.exe
O23 - Service: avast! Mail Scanner - ALWIL Software - C:\Program Files\Alwil Software\Avast4\ashMaiSv.exe
O23 - Service: avast! Web Scanner - ALWIL Software - C:\Program Files\Alwil Software\Avast4\ashWebSv.exe
O23 - Service: ##Id_String1.6844F930_1628_4223_B5CC_5BB94B879762## (Bonjour Service) - Apple Computer, Inc. - C:\Program Files\Bonjour\mDNSResponder.exe
O23 - Service: Capture Device Service - InterVideo Inc. - C:\Program Files\Common Files\InterVideo\DeviceService\DevSvc.exe
O23 - Service: EpsonBidirectionalService - Unknown owner - C:\Program Files\Common Files\EPSON\EBAPI\eEBSVC.exe
O23 - Service: EPSON Printer Status Agent2 (EPSONStatusAgent2) - SEIKO EPSON CORPORATION - C:\Program Files\Common Files\EPSON\EBAPI\SAgent2.exe
O23 - Service: FLEXnet Licensing Service - Macrovision Europe Ltd. - C:\Program Files\Common Files\Macrovision Shared\FLEXnet Publisher\FNPLicensingService.exe
O23 - Service: Roxio UPnP Renderer 11 - Unknown owner - C:\Program Files\Roxio Creator 2009\Digital Home 11\RoxioUPnPRenderer11.exe (file missing)
O23 - Service: LiveShare P2P Server 10 (RoxLiveShare10) - Unknown owner - C:\Program Files\Common Files\Roxio Shared\10.0\SharedCOM\RoxLiveShare10.exe (file missing)
O23 - Service: SessionLauncher - Unknown owner - C:\DOCUME~1\HP\LOCALS~1\Temp\DX9\SessionLauncher.exe (file missing)
O23 - Service: SoundMAX Agent Service (SoundMAX Agent Service (default)) - Analog Devices, Inc. - C:\Program Files\Analog Devices\SoundMAX\SMAgent.exe
O23 - Service: TuneUp Drive Defrag Service (TuneUp.Defrag) - TuneUp Software GmbH - C:\WINDOWS\System32\TuneUpDefragService.exe

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End of file - 7418 bytes

Can anyone help??? I have tried various spyware and malware programs to no avail. Would uninstalling IE7 help? what is this pop up linking too?? All a mystery.
Thanks in advance.