BleepingComputer.com: Lockx Worm?

When I started up our computer, I had the desktop screen, but no icons. I hit control alt delete and there were only 2 programs running instead of the whole list I was used to. One of them (I don't remember what the other was) was lockx which I've never seen before and didn't much like the sound of. I tried to reload Windows 98 with the startup disc, and with the master boot disc, and the windows 98 disc. The farthest I got was to have windows almost installed, up to the final step of looking at the hardware, with only 13 minutes to go! Then it froze. It said to turn off the computer, if there was no activity for awhile...so I did.
When it came back up, I only had a blank blue screen. Am I sunk, and need to resort to a reformatting?
Thank you for your help!!!

lockx.exe

Sophos

Can you get into safe mode?

If so try running the following from safe mode (Getting to safe-mode) Sysclean you'll also need the virus template file from here lpt***.zip remember to extract the contents of the zip file into the same folder as Sysclean.com

or

DrWeb CureIT

If your good with the command line also try Sophos Command Line scanner this command will scan all of your hdd's SAV32CLI.EXE -F -di -remove -dn -mbr -all -zip -p=avscanlog.txt and give you a log file to review afterwards.

If you can't get into safe mode download the following - Ultimate Boot CD however you will need to update the definitions on the disk see here how to do that. Alternatively download a archive version of Public AntiVirus again this will need updating but full instructions are here.

If you want a smaller download look here for instructions on how to create your own boot CD.

Once removed I'd recommend submitting a hijackthis log here.

How to submit a hijackthis log

Download Hijackthis