I don't pretend to understand all that hacked stuff but something seems fishy to me
Yep, me too.
I think I've done fairly well since this is the 1st major attack on my PC, (although I really think at this point there have been lower levels of attacks going on for a
long time) which is my 1st and only PC, since I bought it in the fall of 09.

(I new
absolutely nothing about PC's when I got it.)
(BTW, I showed my friend, Matt, what you, Doug and DL/Pete posted and he agreed.

)
I am curious to find out how this is being done.
Me too!

(See below.)
Have you done scans to see if your computer is clean?
Yes I have, they came up clean, Kaspersky Internet and Malwrare Bites.
There ya go,
clicking on links you should not and code executing on your local machine
Opening email attachments is another
Not saying any of that is what you did Brad
I think I did, and I think I have in the past.
And I'm sure I did open a few attachments in emails that
said they were from like, UPS (when I had parts ordered) or ComEd (our electric company). I got hip to a con when I got an email supposedly from UPS saying they couldn't deliver my package when I knew I had nothing coming. Then a friend told me to never open those attachments. I figured at the time, well, I have programs to block any virus, so what harm could be done, they catch it if it's a virus, right?.

Now I don't even open emails like those let alone open any attachment in it.
I've turned on my PC a few times over the years and my home page had been changed. I just thought it was a glitch or I did something wrong downloading a new program and didn't uncheck a box and just put my Yahoo home page back up.
My Matt, who came over tonight, said that's when the 'proxy server' got in, they changed my home page. I clicked on some pop up box I shouldn't have and when I did I let in some spyware/malware program.
So
I let it bypass the fire wall.
So here's what Matt did tonight, took ~4 hours;
Copied my files to a thumb drive, wiped the whole system clean, reloaded the whole system from the CD disks that came with the PC,
installed Mozilla Foxfire instead of Internet Explorer
(Matt's stand is that out of the web browsers that are out there, that Mozilla is the least vulnerable and that Internet Ex is the most vulnerable for attacks. He was very strong on this as he feels Mozilla stops/blocks
a lot of 'bad stuff' from getting in the 1st place.
) ,
made Microsoft Security Essentials my default security (which is what he has always used, like you Doug), installed (the free) Malwarebites anti malware, and Glary Utilities (free version) as my cleaner program, I was using CC cleaner (free version) and a number of other (free) programs, including 2 CAD programs he gave me.
He said everything he downloaded into my PC is what he uses and said he's
never been hacked.
Which is great because for the last few years I was buying (250+$) Kaspersky Internet Sercurty
and MalwareBites anti malware
and System Mechanic.
And I still got hacked, even if it was my own fault!
He also handed me a WD 500GB which he will install next week, said he's got dozens of them. (Matt is the head computer/code writing/Juke box designer guy of a major digital juke box company.)
I'll see how it goes and let you know. Right now every thing seems to be fine.
I also talked with my bank and I think we will be able to get our $$ back from last Fri. as fraud.
Matt has a SF Fender SR that he'll bring me to look at that I will gladly look at and fix for him if this fixes my problems!
This my friends, I can do.
Brad