|rebooted into safe mode with networking and still the same issue.|
I've also reinstalled IE8 but no luck.
I'm puzzled now,it smells of some type of infection but AVG,bitdfender and housecall cannot find anything wrong.
analysed hijackthis log from another pc and it comes up clean.
After extensive googling found a few posts referrring to HitmanPro35 which found a rootkit on their PC's.
Downloaded and ran said HitmanPro35 and it did indeed find a rootkit and successfully removed it.
Can now access windows update and can analyse hijackthis.
Asus P5Q Pro
8GB 800mhz pc6400
ATI 4870 1GB