IE 7 Won't Open

Okay, first some background...

Yesterday morning while I was getting ready for work my wife tells me the PC has a virus. I'm currently running WinXP SP2 with AVG antivirus. AVG identified it as a Trojan (Agent.Bl or something similar). Basically, I didn't have time to look at it at the time so I shut it down until I could get back to it. I didn't want the trojan propagating across my home network.

When I get home, I tried to boot the PC and it goes into an infinite reboot loop. I tried to boot into last known good config, safe mode (with and without networking)...nothing. I set it not to reboot on system failure and got a BSOD (STOP: c000021a). I tried doing a system repair with the XP CD, chkdsk, tried rebuilding the bootcfg and nothing worked. Ultimately, I ended up installing XP on top of the previous install to rewrite all of the boot files and that worked. I was back in. I didn't want to do it this way because I knew I would inherit all of the registry rot from the previous install.

Now I had to reinstall SP2 and had to delete and reinstall AVG. I scanned with AVG and it found another trojan (PSW.Agent.AKRQ) and successfully deleted that. I also ran malwarebytes, which found nothing, and Spybot S&D. Spybot found about 40 issues (mostly cookies), one of which was another trojan. After removing all of that everything seemed to be working okay, but a little slow.

Later in the day, my wife said that IE kept locking up. I was running IE6...I know, I know. I tried a running the system file checker with no change. I decided to just upgrade to IE7. After the install, IE won't do anything. I click on the icon and nothing. I've tried running with no add-ons. I'm at a loss. Normally, I would just say ***** it and stay with firefox, but I have some remote system for work that require IE.

Any help would be appreciated.