Virus Help! Please Help!?

Something downloaded on my computer called advanced media extension v1.5

and now i can't delete it

it has a weird message popped up that says it is corrupted or something

also i have these weird spyware deletion programs on my computer with random popup messages that says windows internet explorer and windows secruirty alert trying to get me to download some random virus protection.

but it keeps loading internet explorer

it also has an unusual thing where my desktop was that says your computer privacy is in danger

but it is not my desktop it is above it but below my icons and it has a hyperlink image in the center. the thing is closeable but it is weird

I am also getting random system aleart messages that keep trying to make me download "recommended spyware programming"

anyway I have tried everything I have ran countless virus scans but have found nothing

I am using a windows XP and have McAfee.

Please help!

Virus Help! Please Help!?spyware removal

I recently helped a mate remove the exact same thing from his computer, it is a trojan called smitfraud. Whatever you do, don't download the program, and if you already have, don't pay for it!!! It is not easy to get rid of, but possible. (Of all the answers, shel is the only one who was on the right track. I know that neither AVG nor Avast can delete it, and assume that most other AV programs won't either. So all the answerers who suggested AVG are unfortunately wrong. It is not quite that easy with this one, as is often the case with trojans..And you don't need to reformat your pc either, that is an absolute last resort!)