Reformatting is a big hammer to wield.
I just thought of something useful if you have your XP disc: you can preform a windows repair installation.
Quote:
A Repair Install will replace the system files with the files on the XP CD used for the Repair Install. It will leave your applications and settings intact, but Windows updates will need to be reapplied.
A Repair Install will replace files altered by adware and malware, but will not fix an adware, malware problem.
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Good set of instructions
here (also where the quote came from). I've had luck in the past with it, as long as I was sure that the machine had been cleaned up first (and always had backed up before I tried it).