Strange Internet Connection problem (virus?)

I suspect, based upon the combination of problems, that I am dealing with a virus. But I do not know what the virus is and how to get rid of it. here is what I am seeing:

1. Two computers, both with Windows 7 Ultimate on a home networkr with Netgear router.
2. Computer A - My computer. No issues at all. Wired Connection.
3. Computer B - Wife's computer. Also a wired connection. IE9 says no internet connection. Network icon in system tray intermittently says internet access but sometimes says none. Try to troubleshoot connection and get an error message saying that the Troubleshooter is restricted (error 0x80070522) even though the account is an Administrator and has execute permissions on the file. Also got an error message when trying to run Windows Live Messenger (error 0x80072ee7). Also tried resetting IE9 to defaults, with no apparent affect.

I have seen similar viruses that screw up the system and also disable the items that you would use to repair the issues, so I tend to think this is the problem. We have AV software but it is not detecting anything.

Please help.

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