Strange findings on PC /At Bitdefender online

Lastnight, I was finishing up doing some damage cleanup and repairs on my
PC. Since copying windows to this new drive, this thing has been running
like a bucket of (pick your expletive.)! Because of recent re-activation
problems with the folks in Redmond (product key issue)... I'm leary to do
inplace repairs or a clean install.

However, It seems C:\Recycler folders in Admin and owner are reporting
themselves corrupted in safe mode.
In normal opperation, all the trashcans are fine. I decided to go to
bitdefender online and scan, because I had the feeling due to performance
issues, this was the work of some sort of viral activity, that AVG hasn't
been picking up.

Having been there before, I figured the viral defs would update to current
and then I'd press scan. No update happened... So I press scan and IE
freezes up.

Killed IE with task manager, and then went into manage addons - through
Internet settings, and found the Bdoscan8 Active X control was damaged. So I
deleted it and went back to bitdefender to get a new control and hopefully
rescan.

That seemed to do the trick at first. It updated and I pressed scan.
Bitdefender was doing fine until it hit C:\Documents and Settings\(my
name)\local settings\application data\ on my account. Bitdefender got
locked into a terminal scan loop inside of an orphaned \MBSA folder that
apparently didn't get uninstalled. I took that folder out... along with the
History folder, killed everything, rebooted.. went back to bitdefender. It
found 2 viruses, deleted 4 and reported not being able to remove 1. I
thought wow... because it was in my hotmail that I've set up on Outlook
Express. I seldom use hotmail anymore these days.

But - it locked up again, at the end of the test and I didn't get my
report... I went back into Outlook Express and emptied the bulk folder where
Bitdefender said I'd find Trojan.Agent.SS ... and rescanned again.

???? I'm at my wits end here with whats going on.