Error code 12007, unable to connect to internet or download updates to MSE

After booting up, i am unable to connect to the internet.  Diagnostics shows error code 12007..unable to connect to HTTP, HTTPs, or FTP.  Was using AVG anti virus sw and found a trojan which was quarantined.  Issue continued.  removed AVG and loaded MSE with Jun 7 update, but now unable to connect to internet or run MSE update today, Jun 8. 

Previous error showed as 0x8024402c... followed repair outlined in this forum, but the above resulted.  Internet connection was intermittent, but now seems completely locked out.  Running IE 8. 

I have a wireless connection on same modem/router that works fine on laptop (Vista machine), so issue must be within HP Pavilion desktop (Media Center version) running Windows XP with service pack 3.

Help!!

 

 

Please perform the followling these steps to resolve your problem.

1. Open Add/Remove Programs
2. Open Windows Components
3. Open Management and Monitoring tools
4. Select All, OK
5. Open Network Services
6. Select All, OK
7. Close Both
8. Run connection wizard
9. Reboot

If it resolve your problem, please click on "propose as answer" on tyhis page.

Did as you suggested with no change to the problem. Cannot connect to the internet.  Network diagnostics says Invalid IP address (0.0.0.0), RPC server unavailable.. error code 12007.  Previously, had Alueron.H virus but cleared it through AVG .  I sense that it changed something in the registry, but don't know how to repair. 

Any other suggestions??

Thanks