Websites Redirecting to localhost

Hi Guys,

I am having a problem with a windows xp computer. It is definitely infected with some sort of virus. google.com loads fine but the searches from google keep getting redirected somewhere else.
Whats more is that when i try to ping antivirus and anti spyware websites, I am directed to the localhost address of 127.0.0.1.
I have tried lavasoft adaware, spybot , symantec antivirus, malware malbytes and hijack this but to no avail.
Any ideas, if anybody has experienced this before.