Has anyone dealt with this malware?

[kandrathe]

We're baffled, to say the least.

I've run into similar malware. It inserted itself directly into a layer of the network stack. I tried to excise it, but only ended up damaging the operating system. Eventually, I saved off the stuff I needed, wiped the hard drive, and reinstalled from scratch. After awhile, it gets to be the safest, more expedient method anyway. Then, you have no fear of lingering effects either.