Well ive used AVG since we got rid of norton in 2001...i never got any viruses or malware that didnt get detected and automatically fixed. sorry to break it to you, but avg isnt shit.
as for that, if its done that many things you'll be running around in circles trying to get rid of it, as it has infected startup folders, reg keys, system files. it would be quicker to get a xp sp2 disc, then backup all your data to a external and reformat and reinstall XP. then start over. not kidding you'll be there for hoursss!