Inactive [A] Infected by "System Check"/qguaayvrII.exe

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Hi! I am new here, so if I am doing anything the wrong way I appologize and please let me know.

So, I have been infected by this thing that seems to be going around lately, "System Check". First it closed my webbrowser and sent up a bunch of messages about not being able to save and harddisk errors. Without thinking I, sadly, selected the option to scan my system when prompted, for some reason believing it was legit. When it started it seemed obvious that it was fake so I tried shutting it down. Finally I had to resort to turning the computer off. When I started it again similair things happened and my desktop and Start-menu were empty.

Before finding this place I booted in safe mode, entered Regedit and removed qguaayvrII.exe from the HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Run, in the hope that it would stop the thing from starting. (Hope this did not do any harm).

Then started again in normal mode. Start-menu and desktop is blank. Changed settings for the Start-menu so I got "My Computer", "My Documents", "Controll Panel" and "Run" back. All folders appear empty except for the Windows folder. Started Firefox with "Run" and am now going through the steps in the "UPDATED 5-step Viruses/Spyware/Malware Preliminary Removal Instructions".

So far I have installed Avast and it updated right after installation. Rebooted and got a message from Avast that a Trojan had been blocked. I installed Malwarebytes and updated it. I am now in the process of scanning with Malwarebytes. Will continue the 5 steps and post logs.

I would be very thankful for all and any help with this!
 
After running scan in Malwarebytes and choosing to "Remove Selected" I got prompted by Malwarebytes to reboot my computer. After that has been done I cannot log into Windows. I get a message saying: "This copy of Windows must be activated with Microsoft before you can log on. Do you want to activate Windows now?"

Options are "Yes" and "No". What is this? Is it legit? What should I do?
 
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Please, observe following rules:
  • Read all of my instructions very carefully. Your mistakes during cleaning process may have very serious consequences, like unbootable computer.
  • If you're stuck, or you're not sure about certain step, always ask before doing anything else.
  • Please refrain from running tools or applying updates other than those I suggest.
  • Never run more than one scan at a time.
  • Keep updating me regarding your computer behavior, good, or bad.
  • The cleaning process, once started, has to be completed. Even if your computer appears to act better, it may still be infected. Once the computer is totally clean, I'll certainly let you know.
  • If you leave the topic without explanation in the middle of a cleaning process, you may not be eligible to receive any more help in malware removal forum.
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Click "Yes".
 
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