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What McAfee has removed maybe the virus that stole your password, is the PC doing anything else out of the ordinary as when you are infected you can normally tell that something has got in.
I don't personally recommend McAfee, I would go along with what 'stugster' said, even if you give AVG...
The only problem with hosting your domain and email with BT is if you decide to move your broadband away from them at any time which you may well do, you will have to worry about getting your domain moved as well. It might cost you a little per year but I would recommend going with a hosting...
Being as the previous connection was AOL it could be that there is still an old connection or dial up connection still present. Have a look under the network connections page which is in My Networking Places on windows XP. Remove any non-tiscali connections from here. If you haven't already done...