This happened to me yesterday, quote from Adware Report
Flooder.Ake is a brand new threat that began to appear on people's computers on December 6th, 2006.
The symptoms of infection are an alert window which pops up reading "threat found, trojan horse, heal now". Clicking this popup quarantines a system file, which then restarts the computer and pops up the alert again. The computer is then stuck in an infinite loop. It appears at this time that neither restoring the file from quarantine nor restoring the system using a Windows restore point will fix the computer. Only a complete reinstall of the operating system will work.
This problem only seems to be impacting users of the antivirus program, AVG. Initial indications are that this not a true virus, but rather a bug in AVG that results in damage to system critical files.
If you are experiencing problems associated with flooder.ake, please post any pertinent information below. If you have a screenshot that we may share with our readers, please post a URL where we may find it. Thank you!
1. Boot your computer to Safe mode. Power on (or restart) your computer, keep pressing F8 key until the Startup menu appears and choose "Windows in Safe Mode".
2. In the Windows Safe mode, navigate to following folder:
3. Rename rename the following files to avoid furhter deleting of "winlogon.exe".
AVGCLEAN.SYS -> AVGCLEAN.SY_
AVGRSXP.SYS -> AVGRSXP.SY_
4. Launch Registry Editor (regedit.exe) and remove the "__delete" value in the right pane from this key:
5. Restart the computer back to Windows normal mode
6. Update your AVG program to latest virus base version. Launch AVG or open AVG Control Center and press F9 key to update your AVG.
7. Then rename the SYS files back to their original names
AVGCLEAN.SY_ -> AVGCLEAN.SYS
AVGRSXP.SY_ -> AVGRSXP.SYS
8. Restart your computer for to get AVG Resident shield loaded again ]
I was lucky, I have Windows SP2, it looks like people without the service packs are experiencing some major difficulties. I went to the AVG web site and there is no mention of this problem there as of yet.
I hope this helps someone,
have a great day,