Windows 7: Internet works but not browsers

I'm using Windows 7 Home Premium 64-bit.

Lately when I try connecting with any browser it says I can't like the internet is unplugged. But I can download and install Windows 7 updates. I was maybe thinking it was a virus so I installed Malwarebytes and Superantispyware. Malwarebytes wouldn't update but SAS would. It had AVG anti-virus 2011 and I uninstalled it with the Windows built in uninstaller. Then I tried using "avg remover 64 bit" and I got the message "the version of this file is not compatible with the version of windows you are running" which is strange because I have the 64 bit version of Windows. I got suspicious and tried running TDSSKiller.exe, rkill.com and some other AV programs but got the same "the version...". I read in a couple of searches that it's probably a virus and since I can't run any AV stand alone program, I suspect it is. When I ran Malwarebytes and SAS, it showed no virus's which I don't believe. Also everything in the Network and Sharing Center is totally normal showing that all is working fine. So if I can't run any of my anti-trojan, etc. programs, I can't see what it might be. This does the same in Safe Mode.

Is the browser your using set as default???

It does the same thing with any browser I try (firefox, IE9, crome, etc,) and also blocks Malwarebytes from updating.

mmm - i wonder if it's a dns problem.

try this: type http://74.125.224.72 into any browser address bar.
does that take you to google?

Download SAS Portable from a clean pc, then run a full scan in 'Safe Mode'

The ip address doesn't take me to google, just keeps saying can't display the webpage. SAS portable found nothing either.

"Microsoft Standalone System Sweeper Beta, a recovery tool that can help you start an infected PC and perform an offline scan to help identify and remove rootkits and other advanced malware": https://connect.microsoft.com/systemsweeper

Sorry for the delay, but I realized this problem has only been here for a week. So I did a system restore (in normal moded) to about 2 weeks ago but the restore got hung up for too long (something about the registry) so I restarted and ran the fix start option. So I guess the restore didn't work and I'm still where I was at the other days.

Here are some notes:

-running Win 7 Home Premium 64-bit
-Only 64 bit IE9 works
-trying to run AV programs like TDSSkiller and rkill.com give a message saying file is not compatible with the version of Win 7 i'm running, unless I need the 64bit versions which I've never needed before
-everything seems normal connection wise (wired and wireless), but Chrome says in options that it is using a proxy to connect, but when I go to change it, it is not set to proxy, just the normal settings
-seems like a sneaky virus, but is it?
-I've run all the anti-virus programs I can, including all the ones mentioned
-malwarebytes won't update but SAS will

So you downloaded the image of MSSS and burned a DVD/CD and then you changed the BIOS to boot from a CD/DVD, inserted the MSSS CD/CD and let the computer boot from it, not the hard drive. Correct?

After booting to the MSSS it's a good idea to allow it to update itself before scanning the entire hard disk, just in case new definitions have been discovered since the ISO was published.

I did that but it didn't find anything.