Once we finish our repairs here you do need to update to Service Pack 2, but not just yet.
Really would like to see some of what that second OTL log would have shown though.
Download HijackThis from
Here. Then click on the downloaded file, and install HijackThis.
In HijackThis, click Config - Misc Tools - Open Uninstall Manager.
Click on
Save List, then save that to a location you can locate again (such as the desktop). Copy/paste the contents of that back here please.