Another update:
I took the original image that I started with,
I didn't delete additional entries, and deleted the Windows partition that M$ helped me install and replaced with empty fat32, btw this was actually the D:\ drive before the M$ help.
When they helped it became labeled as C:\. Which was confusing, because gparted saw it as hda3 extended with hda5 inside.
So after deleting and reformatting , then I deleted D:\ which was labeled as hda2 & made it an extended logical partition and fat32.
I tried system restore with cd's but they didn't work they stop at C:\DOTNETFX\DEP.MGR again.
I had to set PQService to boot because RTMBR.BIN wasn't installed. I let it do it's restore & tried system restore buttons they didn't work. So I logged in to safe mode and copied MBRWRWIN.EXE & RTMBR.BIN, rebooted and went logged in to my account and installed, then reran system restore.
Before updating I went to Avira and downloaded directly from there site and ran it & it found nothing.
After doing that I went directly to Malwarebytes site, downloaded, ran it and it came back with nothing.
Tomorrow I'm going to burn another set of restore disks, even though it's unnecessary, being that I have a full image. Actually I'm going to make another image of only PQService and put on 4Gig drive.
Then I'll do updates and if there are problems they should detect immediately.
Either my restore disks were corrupted or they have uuid of the drive they came from.
I'll update tomorrow.