Pretty much covered it, but it's more than likely some rogue BHO (Browser Helper Object) is installed and running within IE. My first port of call would be to check what's loaded via
Tools>Manage Addons>Enable/Disable Addons disable anything that looks suspect, including Java.
Quickest way of checking this however is by going to
Start>Run>iexplore.exe -extoff then click OK, this will load IE in vanilla format without bells and whistles, see if you can get to Google then. Try typing the IP address below directly into the address bar, does it resolve as Google UK? Or still redirected?
Another thing is to check your DNS is working, go to
Start>Run>cmd, type into the black box
ping google.co.uk my DNS has this listed as 209.85.229.99.
Once you've worked that out, I'd follow the steps above, however I'd go down this road:
1. Disable System Restore.
2. Go to Control Panel, then Java, open and click to empty Temporary Files.
3. Go to IE, remove Temp Files (Tools>Internet Options).
4. Get a copy of SuperAntiSpyware/MBAM, Hitman Pro, run each scan one at a time, remove all extraneous results.
5. Reboot.
6. Try Browser.
7. Head over to
http://www.eset.com/online-scanner, run a final scan.
(I've recommended the above, which is probably overkill - your infection doesn't sound much more than a redirect BHO)
If it's still fked, head over to bleepingcomputer and make a post, they'll give you instruction on removal
