did you made full scan on your computer?the virus seems located in C:\Recycler, hidden system folder or system32 folder
i never handle this virus before, not sure how to fix it
Removal tool
alternatively u can try Combofix, just run in normal windows, it can terminate explorer automatically
btw make sure u clean all your cookies using Ccleanercoz in ur case, the virus seems want to attack and change your host file, it may come from your pc or network..

This post has been edited by gnush85: Sep 26 2009, 11:23 PM