No NIS System Tray icon or internet access

While on the internet with NIS 2009 smoothly running and newly updated, Adobe Acrobat briefly launched and installed something nasty that NIS initially reported (Trojan.FakeAV) it had removed. However, upon a reboot on this XP SP2 notebook, NIS's services didn't load, there was no NIS System Tray icon, nor could IE see the internet.

 

In Safe Mode I ran a full Norton scan which detected no security risks.

 

In Safe Mode I tried to use System Restore to go back, but at the Confirm Restore Point Selection screen, nothing happens when I click Next.

 

In Safe Mode I installed Malwarebytes ver.1.42. It installed but will not launch or update!

 

 In Safe Mode only 9 services are running and Task Manager shows no apps running. What kind of virus can do this? And what approach would you take next? I'm stumped!

 

By the way, in Safe Mode on the infected HP notebook, the external USB mouse and keyboard work fine, but if I try to connect an external USB drive or USB mem stick to the notebook - doesn't see either. With the internet connection not working, I'll need a suggestion too on how to get files to the notebook (or at least copy some personal files off the notebook before using a Norton Ghost image to wipe the whole thing clean if you suggest I throw in the towel).