Browser Hijacked?

I run the current version of Norton Internet Security and Malwarebytes on Windows 7 Pro 64-bit using IE9.  Problem symptoms are:

1. All searches using any search engine return what look like valid results but when the links are clicked I am taken to an assortment of different sites that look like link pages or poor ads.

2. Malwarebytes pops up periodically with a message that it successfully blocked access to potentially malicious website for rundll32.exe.

3. Windows alert state Security Center not on.  When I click turn it on, I am told it cannot be turned on.

 

What I've done:

1.  Cleared my IE cache and performed a reset, which diables all add-ons and toolbars

2.  Checked Norton and every feature is listed as on.

3.  Checked add-ons and add/remove programs - no unfamiliar programs

4.  Ran full system scan.  Norton reported 9 low level tracking cookies and fixed them

 

Lastly, I tried to do a System Restore.  Windows told me that System Protection was not on for the C drive.  I turned it on and found there were no restore points anymore. 

 

I read my email in the reading pane, I do custom installs of all software so I can uncheck unwanted software and I keep my operating system and all software up to date and current.  I do not surf the web and avoid risky sites.

 

I have had a computer since 1982 and this is the first time my computer has been invaded.  My big question is how did something like this get past Norton????