Your msinfo32 looks fine except I wonder if you have manually adjusted your Windows Virtual Memory paging file settings? That is not your connectivity problem but it looks like it has been tinkered with. Unless you know more about managing virtual memory
than XP, it is best to just let XP handle all that stuff and leave the settings at System managed size.
I am not a WoW player and do not use IE8 but it would seem that some of the other stuff should work. IE8 has the most overhead of just about any Internet browser you could choose to use. I will not be much help with IE8 issues, but don't despair... these
forums are flooded with Microsoft MVPs and VSOPs.
Here is what sometimes happens after a malicious software attack and you can check these things on your system. Some of it depends on the unspecified"few things" found by the scans, which I don't know that either. SAS usually just finds some tracking cookies
after MBAM.
If you are compelled to install AVG, I would advise you to do a custom install instead of letting it just install everything it feels like installing, or you may not be enjoying your WoW too much when you get done:
When installing AVG select the CUSTOM install option and do NOT install (i.e., uncheck) Linkscanner, Search-Shield, Active Surf-Shield, Security toolbar or any of the email scanning components.
Why you don't need your anti-virus to scan your email: http://thundercloud.net/infoave/tutorials/email-scanning/index.htm
Now for your connectivity issue:
Click Start, Run and in the box enter:
inetcpl.cpl
Click OK to launch the Internet Properties control panel applet. These settings control your Internet access for all browsers.
Or, from Internet Explorer click Tools, Internet Options, Connections, LAN Settings.
On most home environments, there will be a check in Automatically detect settings and the other boxes are (like Proxy server) are unchecked.
Automatically detect setting = checked
Use automatic configuration script = UNchecked
Use a proxy server for your LAN = UNchecked
Some malware will tamper with these settings and your anti malware software can't tell if you changed them or malware changed them so after removing any infections, it will just leave the settings as it finds them (this is a good thing) but may leave your
Internet access disabled.
Once connectivity is restored, reboot your system to be sure the connections "stick".
If things are worse, undo the changes and continue troubleshooting.