Please note that the Alureon.J (there are multiple "." variants of this virus) virus typically installs itself to a hidden partition not normally seen by the Windows Partition Manager or by Windows Installation (advanced partition screen). In my case, it installed itself to a small (1.3MB, I think) partition at the end of the HDD. Note that this computer is a completely fresh install only online to grab Flash, Java, Adobe Reader, Chrome (all users), and Windows Updates.
I had to use GPart from Hiren's Boot CD in order to even see the hidden partition (although GPart did not "flag" it as hidden). I followed the instructions as outlined in this thread, by deleting the partition and then running a freshly downloaded version Windows Defender Offline (downloaded and burned to disk by a clean computer). After running the "Full" scan in WDO, it came back clean. As soon as I booted into Windows, it came back up with the same error message as outlined in your original post above.
Now that the "hidden" partition has been removed, I'm going to run "Darik's Boot and Nuke", and start all over.
Nasty nasty virus...