I was definitely infected with one of the malware programs that mocked being an anti-malware/anti-virus tool, and I was able to get rid of MOST of it. MalwareBytes and HitMan Pro got rid of the trojan files (I also ran Spybot and TDSS Killer which didn't find anything), but I'm still being plagued by an after affect of it. EVERY file I try to download from the internet gets the above error message and it gets deleted.
I re-ran Hitman Pro and it found that my Internet Explorer was being redirected to a Proxy server "localhost:23012". I found that in my registry and modified the keys to not redirect and I removed the Proxy server address. (Internet Explorer options did not show a proxy server being used).
However, I still cannot download files from the internet. Very frustrated!!