I to found my virus to be svchost.exe. This file is in fact in the startup registry and the way I solved it was to delete all the proccesses of that name (I had a lot) using task manager (copy to desktop if you can't open it normally). Then a message came up saying about an error and the system will shut down in 30 seconds (or something like that). Just ignore it and make sure all the processes are gone. Then goto the actual program under start > all programs > startup or c:/> documents and settings > all users > start menu > startup. Try to do this before the computer shuts down (I found the start method quicker).

I hope this helps . It helped me sort out that problem.