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Can't access HTTP, Can access HTTPS--What's wrong here?

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I just cleaned a virus off a client's mother-in-law's computer. Once the virus was removed, no EXE files would run. The virus had inserted itself as the handler for .EXE in the registry, and once it was deleted the system would not run .EXE files any more.

I know that's not your symptom, but maybe it would be worth an in-depth check of the registry to see if any of the TCP, UDP or IP handlers are being re-directed. Like your problem, my client's system ran fine in safe mode.

The fix was easy; just merge a .REG file to patch the registry back the way it should be. It was a readily-available download, free.