"Though the backdoor has been identified and can be killed, because of it's backdoor functionality, your PC is very likely compromised and there is no way to be sure your computer can ever again be trusted. It is dangerous and incorrect to assume the computer is secure even if the malware appears to have been removed. Many experts in the security community believe that once infected with such a piece of malware, the best course of action would be a reformat and clean reinstall of the OS. This is something I don't like to recommend normally, but in most cases it is the best solution for your safety."
Quote by htv8, HJT Forum.
The first thing you need to do is delete your current install
...the Recovery Console is not an option, as I read things, so I really don't know why you tried to access it. What is suggested is known as a clean install.
System manufacturer and model?
Do you have a Microsoft Genuine XP CD...or do you have restore/recovery CDs provided by the manufacturer of your system?
References, please read and ask (now) any questions you may have:
XP Clean Install, Stevens - http://www.michaelstevenstech.com/cleanxpinstall.html
Clean Install Procedure with Illustrative Screen Captures - http://www.theeldergeek.com/xp_home_install_-_graphic.htm
Do not elect to do a quick format when asked, do the regular format, Differences between a Quick format and a regular format during a clean installation of Windows XP - http://support.microsoft.com/kb/302686
Edited by hamluis, 17 November 2009 - 11:26 AM.