"Smitfraud-C. Toolbar888" and random IE windows?

I am a webmaster, and I am trying to build my website, but my computer keeps acting weird and seems to be going into random hybernation for no reason in the middle of ANYTHING. I tried to do a scan to see if there was any virus/malware that was causing this, but nothing came up.

When I ran Spybot Search and Destroy, "Smitfraud-C. Toolbar888" came up... for the bazillionth time! What do I do??? Also, random websites just pop up in new windows, and I can't stop them. Even pop-up blockers with by Browser and Google Toolbar can't stop them!

Here is some info that I got from HijackThis (You may find Vista applications listed due to the fact that I downloaded the Vista Transformation package from WindowsX):

Logfile of HijackThis v1.99.1

Scan saved at 11:13:27 AM, on 06/05/2007

Platform: Windows XP SP2 (WinNT 5.01.2600)

MSIE: Internet Explorer v7.00 (7.00.6000.16441)

Running processes:

C:\WINDOWS\System32\smss.exe

C:\WINDOWS\system32\winlogon.exe

C:\WINDOWS\system32\services.exe

C:\WINDOWS\system32\lsass.exe

C:\WINDOWS\system32\svchost.exe

C:\WINDOWS\System32\svchost.exe

C:\WINDOWS\system32\spoolsv.exe

C:\Program Files\FSI\F-Prot\fpavupdm.exe

C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe

C:\WINDOWS\system32\PSIService.exe

C:\WINDOWS\system32\wscntfy.exe

C:\windows\system\hpsysdrv.exe