Virus infection definetly, Not sure of the name, but need help "cleaning up the bits"

Well I'll give the basic layout of what happened. Somehow I got a virus that would bring the little red circle with a white X in the toolbar constantly saying "Warning! Your computer may be infected with malicious spyware!" or something like that. I met this virus about a year ago and rebooted my system completely(Like a wipe of the drive) to remove it. It has come back this time and I don't have another windows to install, so I tried to remove it. BTW I'm running Windows XP. So I use AVG to hunt down and delete files, System Utilities 9 I think. Whatever is the latest as of this post). Now it still would not let me use my desktop or the task manager. I cant seem to pick this up. Can anybody explain what I got and how do I remove it for good this time?

Also to note I've found some very suspicious files.
1) In C:/Program Files/ I found a folder named "microsoft face"(please note the uncapitalized M in microsoft) It is new, it doesn't have anything I can view with or without hidden viewing turned on, but when I attempt to delete it it is busy. The only folder within that is also empty is bin.

Hope you can help with this very limited information. Please let me know if it as possible that I may assist you better so that you may assist me better.


Best regards,
Robert

Im sorry, I believe I put this in the wrong section... =( Sorry about that....

Before we start fixing anything you should print out these instructions or copy them to a NotePad file so they will be accessible. Some steps will require you to disconnect from the Internet or use Safe Mode and you will not have access to this page.

Please download DrWeb-CureIt and save it to your desktop. DO NOT perform a scan yet.

Reboot your computer in "Safe Mode" using the F8 method. To do this, restart your computer and after hearing your computer beep once during startup (but before the Windows icon appears) press the F8 key repeatedly. A menu will appear with several options. Use the arrow keys to navigate and select the option to run Windows in "Safe Mode".

Scan with Dr.Web CureIt as follows:

• Double-click on launch.exe to open the program and click Start. (There is no need to update if you just downloaded the most current version
• Read the Virus check by DrWeb scanner prompt and click Ok where asked to Start scan now? Allow the setup.exe to load if asked by any of your security programs.
• The Express scan will automatically begin.
  (This is a short scan of files currently running in memory, boot sectors, and targeted folders).
• If prompted to dowload the Full version Free Trial, ignore and click the X to close the window.
• If an infected object is found, you will be prompted to move anything that cannot be cured. Click Yes to All.
• When complete, click Select All, then choose Cure > Move incurable.
  (This will move any detected files to the C:\Documents and Settings\userprofile\DoctorWeb\Quarantine folder if they can't be cured)

• Now put a check next to Complete scan to scan all local disks and removable media.
• In the top menu, click Settings > Change settings, and UNcheck "Heuristic analysis" under the "Scanning" tab, then click Ok.
• Back at the main window, click the green arrow "Start Scanning" button on the right under the Dr.Web logo.
• When the scan is complete, a message will be displayed at the bottom indicating if any viruses were found.
• Click "Yes to all" if asked to cure or move the file(s) and select "Move incurable".
• In the top menu, click file and choose save report list.
• Save the DrWeb.csv report to your desktop.
• Exit Dr.Web Cureit when done.
• Important! Reboot your computer because it could be possible that files in use will be moved/deleted during reboot.
• After reboot, post the contents of the log from Dr.Web in your next reply. (You can use Notepad to open the DrWeb.cvs report)

i am sorry, but what if I ran a scan before I posted this?

Also, as I understand it sounds radical, what do you think of redownloading it to almost ina sense "repair" the virus so that the cureIt can recognize it?

Let's give cureit a chance to continue where avg failed.

There will be more to do also so let's get started

Well I have bad news.

I tried all the steps and completed the express search. No Viruses.
I ran the full scan, but during the scan I had an scvchost failure, or whatever program that is. Id look up the correct spelling on task manager but I cant because it shut it off. It then shutdown my computer automatically. I will now try to run the full scan again and if the problem persists I will bring more info on it.

I had the problem again. I ran shutdown -a to abort the shutdown but about an hour later it happened when I was not watching :/

It has been three days and I read somewhere that I should post again at 3 days. Please someone help me.

Well I was hoping you would get cureit to work, you could try a rescue cd

http://www.free-av.com/en/products/12/avir...cue_system.html

or

post in the HJT forum if you can produce a log

http://www.bleepingcomputer.com/forums/t/34773/preparation-guide-for-use-before-using-malware-removal-tools-and-requesting-help/

I downloaded DDS and made the topic Here. My lovely computer had some sort of lag and duplicated the click, so I apologize for the second topic that is exactly the same....

Now that your log is properly posted, you should NOT make further changes to your computer (install/uninstall programs, use special fix tools, delete files, edit the registry, etc) unless advised by a HJT Team member, nor should you continue to ask for help elsewhere. Doing so can result in system changes which may not show it the log you already posted. Further, any modifications you make on your own may cause confusion for the helper assisting you and could complicate the malware removal process which would extend the time it takes to clean your computer.

From this point on the HJT Team should be the only members that you take advice from, until they have verified your log as clean.

Please be patient. It may take a while to get a response because the HJT Team members are very busy working logs posted before yours. They are volunteers who will help you out as soon as possible. Once you have made your post and are waiting, please DO NOT make another reply until it has been responded to by a member of the HJT Team. Generally the staff checks the forum for postings that have 0 replies as this makes it easier for them to identify those who have not been helped. If you post another response there will be 1 reply. A team member, looking for a new log to work may assume another HJT Team member is already assisting you and not open the thread to respond.

If after 5 days you still have received no response, then post a link to your HJT log in the thread titled "Post in this thread when you haven't received an answer in five days.".

To avoid confusion, I am closing this topic.