I've recently had good success with
Malwarebytes to remove some stubborn trojans. I was actually surprised at what it found that none of the other regular routine programs found. It might be worth a complete scan with it to see if it comes up with anything.
When you did the reformat - did you totally 100% wipe the hard drive clean and start from scratch - reinstalling the operating system as well as all your programs? Did you copy any data off prior to reformat and then put it back on?
It might also be worth using a more highly specialized program to scan for malicious items that may not be found by other regular means. However, these prorams will require that you print out instructions and follow them step by step 100%. You also need to be aware that in the process of looking for deeply buried items, they may also reset some of your internet and startup settings. If you want to try one here are the instructions for use from Bleeping Computer and a download link for
SDFix . This is the type of program that should only be run when you've gone through all the other avenues to try and locate malicious items.
I can also see from your logfile you are not running SP3 for XP. I strongly suggest you make sure you have all the latest Windows updates. It would appear you are not using a software firewall. That's fine, since I myself do not run one either, but I do hope that you are using some kind of hardware firewall. Can you please advise if that is the case?
Please run Malwarebytes first. If that doesn't work, then it is a choice you need to make if you are comfortable with the instructions and use of SDFix. Given that you are being told your WLM is sending links to your contacts that you did not send, it stil suggests virus/trojan behaviour of some sort. The problem is finding the culprit and removing it.