restored laptop to factory settings cant open downloaded files

I do apriciate eveyones help on this, i must go to bed, but really hope you guys can help.Thanks russ

ISO is a disk image, when you download your bootable cd they gave you instructions for, it will save as an ".iso" extension. Use something like CyberlinkPower 2 go, to burn this to a dvd, and there ya have it.... once downloaded pop this into your computer, and boot up from it like you did your windows cd when you did the "clean restore" if you didnt do it with a cd, than you need to go to your control panel and choose cd as first boot option, reboot... and the computer will boot off of the CD...
hope this helps

YOu ran full Factory Recovery and told it to recover the computer to factory condition, correct?

This should overwrite any infection but still may not rule out corruption since the factory Recovery is an inferior install loaded with bloatware and useless factory utilities which have much better versions built into Win7.

For this reason I would try to find a Win7 DVD ISO as suggested to do the cleanest possible install following these steps to get it perfect: Reinstalling Windows 7.

If you can't borrow a WIn7 retail DVD from a friend, then you can search Google for "official Win7 ISO download from My Digital Life" to download your licensed version, burn to DVD or write to flash stick using this tool: Windows 7 USB-DVD Download Tool

Feel free to ask back any questions as this is a specialty of our Forums where we've helped thousands of users clean reinstall Win7 to get the best possible install.

I got the corrupted download error when I had my Downloads file on a separate partition linked from User folders - never resolved it so I keep my User folders on C now.

What I would do now is locate a WIn7 DVD or ISO file to clean reinstall with the Product Key on COA sticker.
Reinstalling Windows 7

I would also not use AVG which is not recommended by anyone here. Instead use free Microsoft Security Essentials or Avast 6 with the WIn7 firewall.

Until you find a WIn7 installer you can try wiping the HD first before running Recovery to rule out corrupt or infected code affecting the boot sector of your HD, a step which solves installation failures here regularly: SSD - HDD Optimize for Windows Reinstallation

I used a programe called hijack this and it came up with this, i dont really know that much, but do you think that the problem im having is contain in these files and what ones should i try to delete.

Logfile of Trend Micro HijackThis v2.0.4
Scan saved at 09:07:08, on 04/11/2011
Platform: Windows 7 (WinNT 6.00.3504)
MSIE: Internet Explorer v8.00 (8.00.7600.16385)
Boot mode: Normal
Running processes:
C:\Program Files (x86)\Common Files\LightScribe\LightScribeControlPanel.exe
C:\Users\Russell Hyldon\AppData\Roaming\T-Mobile Internet Manager\ouc.exe
C:\Program Files (x86)\Hewlett-Packard\HP Quick Launch Buttons\QLBCtrl.exe
C:\Program Files (x86)\Java\jre6\bin\jusched.exe
C:\Program Files (x86)\Hp\HP Software Update\hpwuschd2.exe
C:\Program Files (x86)\T-Mobile\T-Mobile Internet Manager\DataCardMonitor.exe
C:\Program Files (x86)\Hewlett-Packard\Shared\hpqToaster.exe
C:\Windows\SysWow64\Macromed\Flash\FlashUtil10c.exe
C:\Program Files (x86)\Internet Explorer\iexplore.exe
C:\Program Files (x86)\Internet Explorer\iexplore.exe
C:\Program Files (x86)\Windows Live\Toolbar\wltuser.exe
C:\Program Files (x86)\T-Mobile\T-Mobile Internet Manager\T-Mobile Internet Manager.exe
C:\Program Files (x86)\Trend Micro\HiJackThis\HiJackThis.exe
C:\Windows\SysWOW64\NOTEPAD.EXE
C:\Program Files (x86)\Internet Explorer\iexplore.exe
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = Compaq | MSN
R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = Bing
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Start Page = Google
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = Compaq | MSN
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = Bing
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = Bing
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = Compaq | MSN
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,SearchAssistant =
R0 - HKLM\Software\Microsoft\Internet Explorer\Search,CustomizeSearch =
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Local Page = C:\Windows\SysWOW64\blank.htm
R0 - HKCU\Software\Microsoft\Internet Explorer\Toolbar,LinksFolderName =
F2 - REG:system.ini: UserInit=userinit.exe
O2 - BHO: AcroIEHelperStub - {18DF081C-E8AD-4283-A596-FA578C2EBDC3} - C:\Program Files (x86)\Common Files\Adobe\Acrobat\ActiveX\AcroIEHelperShim.dll
O2 - BHO: (no name) - {5C255C8A-E604-49b4-9D64-90988571CECB} - (no file)
O2 - BHO: Symantec NCO BHO - {602ADB0E-4AFF-4217-8AA1-95DAC4DFA408} - C:\Program Files (x86)\Norton Internet Security\Engine\17.0.0.136\coIEPlg.dll
O2 - BHO: Symantec Intrusion Prevention - {6D53EC84-6AAE-4787-AEEE-F4628F01010C} - C:\Program Files (x86)\Norton Internet Security\Engine\17.0.0.136\IPSBHO.DLL
O2 - BHO: Search Helper - {6EBF7485-159F-4bff-A14F-B9E3AAC4465B} - C:\Program Files (x86)\Microsoft\Search Enhancement Pack\Search Helper\SearchHelper.dll
O2 - BHO: Windows Live Sign-in Helper - {9030D464-4C02-4ABF-8ECC-5164760863C6} - C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\WindowsLiveLogin.dll
O2 - BHO: Java(tm) Plug-In 2 SSV Helper - {DBC80044-A445-435b-BC74-9C25C1C588A9} - C:\Program Files (x86)\Java\jre6\bin\jp2ssv.dll
O2 - BHO: Windows Live Toolbar Helper - {E15A8DC0-8516-42A1-81EA-DC94EC1ACF10} - C:\Program Files (x86)\Windows Live\Toolbar\wltcore.dll
O3 - Toolbar: Norton Toolbar - {7FEBEFE3-6B19-4349-98D2-FFB09D4B49CA} - C:\Program Files (x86)\Norton Internet Security\Engine\17.0.0.136\coIEPlg.dll
O3 - Toolbar: &Windows Live Toolbar - {21FA44EF-376D-4D53-9B0F-8A89D3229068} - C:\Program Files (x86)\Windows Live\Toolbar\wltcore.dll
O4 - HKLM\..\Run: [QlbCtrl.exe] C:\Program Files (x86)\Hewlett-Packard\HP Quick Launch Buttons\QlbCtrl.exe /Start
O4 - HKLM\..\Run: [NortonOnlineBackupReminder] "C:\Program Files (x86)\Symantec\Norton Online Backup\Activation\NobuActivation.exe" UNATTENDED
O4 - HKLM\..\Run: [Adobe Reader Speed Launcher] "C:\Program Files (x86)\Adobe\Reader 9.0\Reader\Reader_sl.exe"
O4 - HKLM\..\Run: [Easybits Recovery] C:\Program Files (x86)\EasyBits For Kids\ezRecover.exe
O4 - HKLM\..\Run: [SunJavaUpdateSched] "C:\Program Files (x86)\Java\jre6\bin\jusched.exe"
O4 - HKLM\..\Run: [HP Software Update] C:\Program Files (x86)\Hp\HP Software Update\HPWuSchd2.exe
O4 - HKLM\..\Run: [WirelessAssistant] C:\Program Files (x86)\Hewlett-Packard\HP Wireless Assistant\HPWAMain.exe
O4 - HKLM\..\Run: [DataCardMonitor] C:\Program Files (x86)\T-Mobile\T-Mobile Internet Manager\DataCardMonitor.exe
O4 - HKCU\..\Run: [LightScribe Control Panel] C:\Program Files (x86)\Common Files\LightScribe\LightScribeControlPanel.exe -hidden
O4 - HKCU\..\Run: [HW_OPENEYE_OUC_T-Mobile Internet Manager] "C:\Program Files (x86)\T-Mobile\T-Mobile Internet Manager\UpdateDog\ouc.exe"
O9 - Extra button: Blog This - {219C3416-8CB2-491a-A3C7-D9FCDDC9D600} - C:\Program Files (x86)\Windows Live\Writer\WriterBrowserExtension.dll
O9 - Extra 'Tools' menuitem: &Blog This in Windows Live Writer - {219C3416-8CB2-491a-A3C7-D9FCDDC9D600} - C:\Program Files (x86)\Windows Live\Writer\WriterBrowserExtension.dll
O9 - Extra button: Send to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~2\MICROS~4\Office12\ONBttnIE.dll
O9 - Extra 'Tools' menuitem: S&end to OneNote - {2670000A-7350-4f3c-8081-5663EE0C6C49} - C:\PROGRA~2\MICROS~4\Office12\ONBttnIE.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~2\MICROS~4\Office12\REFIEBAR.DLL
O17 - HKLM\System\CCS\Services\Tcpip\..\{BD155571-55E3-4306-88C8-863DF7FB14FE}: NameServer = 149.254.230.7 149.254.192.126
O23 - Service: Andrea ST Filters Service (AESTFilters) - Andrea Electronics Corporation - C:\Windows\System32\DriverStore\FileRepository\stwrt64.inf_amd64_neutral_b87ff64c8b56b7db\AESTSr64.e xe
O23 - Service: @%SystemRoot%\system32\Alg.exe,-112 (ALG) - Unknown owner - C:\Windows\System32\alg.exe (file missing)
O23 - Service: Com4QLBEx - Hewlett-Packard Development Company, L.P. - C:\Program Files (x86)\Hewlett-Packard\HP Quick Launch Buttons\Com4QLBEx.exe
O23 - Service: @%SystemRoot%\system32\efssvc.dll,-100 (EFS) - Unknown owner - C:\Windows\System32\lsass.exe (file missing)
O23 - Service: @%systemroot%\system32\fxsresm.dll,-118 (Fax) - Unknown owner - C:\Windows\system32\fxssvc.exe (file missing)
O23 - Service: GameConsoleService - WildTangent, Inc. - C:\Program Files (x86)\HP Games\HP Game Console\GameConsoleService.exe
O23 - Service: HP Health Check Service - Hewlett-Packard - C:\Program Files (x86)\Hewlett-Packard\HP Health Check\hphc_service.exe
O23 - Service: hpqwmiex - Hewlett-Packard Development Company, L.P. - C:\Program Files (x86)\Hewlett-Packard\Shared\hpqwmiex.exe
O23 - Service: @keyiso.dll,-100 (KeyIso) - Unknown owner - C:\Windows\system32\lsass.exe (file missing)
O23 - Service: LightScribeService Direct Disc Labeling Service (LightScribeService) - Hewlett-Packard Company - C:\Program Files (x86)\Common Files\LightScribe\LSSrvc.exe
O23 - Service: @comres.dll,-2797 (MSDTC) - Unknown owner - C:\Windows\System32\msdtc.exe (file missing)
O23 - Service: @%SystemRoot%\System32\netlogon.dll,-102 (Netlogon) - Unknown owner - C:\Windows\system32\lsass.exe (file missing)
O23 - Service: Norton Internet Security (NIS) - Symantec Corporation - C:\Program Files (x86)\Norton Internet Security\Engine\17.0.0.136\ccSvcHst.exe
O23 - Service: @%systemroot%\system32\psbase.dll,-300 (ProtectedStorage) - Unknown owner - C:\Windows\system32\lsass.exe (file missing)
O23 - Service: Cyberlink RichVideo Service(CRVS) (RichVideo) - Unknown owner - C:\Program Files (x86)\CyberLink\Shared files\RichVideo.exe
O23 - Service: @%systemroot%\system32\Locator.exe,-2 (RpcLocator) - Unknown owner - C:\Windows\system32\locator.exe (file missing)
O23 - Service: @%SystemRoot%\system32\samsrv.dll,-1 (SamSs) - Unknown owner - C:\Windows\system32\lsass.exe (file missing)
O23 - Service: @%SystemRoot%\system32\snmptrap.exe,-3 (SNMPTRAP) - Unknown owner - C:\Windows\System32\snmptrap.exe (file missing)
O23 - Service: @%systemroot%\system32\spoolsv.exe,-1 (Spooler) - Unknown owner - C:\Windows\System32\spoolsv.exe (file missing)
O23 - Service: @%SystemRoot%\system32\sppsvc.exe,-101 (sppsvc) - Unknown owner - C:\Windows\system32\sppsvc.exe (file missing)
O23 - Service: Audio Service (STacSV) - IDT, Inc. - C:\Windows\System32\DriverStore\FileRepository\stwrt64.inf_amd64_neutral_b87ff64c8b56b7db\STacSV64.e xe
O23 - Service: @%SystemRoot%\system32\ui0detect.exe,-101 (UI0Detect) - Unknown owner - C:\Windows\system32\UI0Detect.exe (file missing)
O23 - Service: @%SystemRoot%\system32\vaultsvc.dll,-1003 (VaultSvc) - Unknown owner - C:\Windows\system32\lsass.exe (file missing)
O23 - Service: @%SystemRoot%\system32\vds.exe,-100 (vds) - Unknown owner - C:\Windows\System32\vds.exe (file missing)
O23 - Service: @%systemroot%\system32\vssvc.exe,-102 (VSS) - Unknown owner - C:\Windows\system32\vssvc.exe (file missing)
O23 - Service: @%systemroot%\system32\wbengine.exe,-104 (wbengine) - Unknown owner - C:\Windows\system32\wbengine.exe (file missing)
O23 - Service: @%Systemroot%\system32\wbem\wmiapsrv.exe,-110 (wmiApSrv) - Unknown owner - C:\Windows\system32\wbem\WmiApSrv.exe (file missing)
O23 - Service: @%PROGRAMFILES%\Windows Media Player\wmpnetwk.exe,-101 (WMPNetworkSvc) - Unknown owner - C:\Program Files (x86)\Windows Media Player\wmpnetwk.exe (file missing)
--
End of file - 9467 bytes

The log confirms you have tons of unnecessary running processes for factory bloatware and useless factory utilities which have much better versions build into Win7. This is why I've suggested a clean reinstall with Win7 installer instead of trying to struggle with Factory Recovery.

Until then you can Clean up factory bloatware to see if that helps.

I gave you another option to wipe the HD first before running Recovery since you might have some corrupt code in the boot sector of the HD which can cause assorted problems. If you have questions ask them back but don't ignore steps given if you want our help.

I started to delete the hard drive as you said, but i have to hard drives "c drive" and "restore", which of these should I delete before I continue with restore