Caught Malware/Virus! Please Help

I caught a bad program, virus, something or other from something I downloaded. It copied files with cmd.exe and before I knew it, I had programs running claiming to be RapidAntivirus or something along those lines. My computer clock had gone and was replaced with VIRUS ALERT!, my desktop was replaced with something else, and I had numerous bad popups (not from the internet, but from the computer itself) saying about how i'd caugh a virus etc (these popups were from the virus itself, so the virus installed a program which was scanning my PC for viruses even though it was a virus program itself - if that makes sense) I dread to think what it was actually scanning, I seem to think it was more placing whatever it wanted where it scanned.

Anyway, I removed it with malwarebytes, and the program, popups went away, however I am left with things. My desktop has is now a folder, so instead of seeing a desktop image/background, I see an enlarged inside of a folder with program icons inside. I can make it smaller when dragging the side, and the desktop will show. Also, I am getting fake Windows Security Alerts popping up every 15 minutes or so, claiming I have many viruses. I'm not sure what to do next.

Here is my HiJack This log, perhaps this can help -

chill dude, remove AVG and put Kaspersky Internet Security to remove the threats. Then paste a new hijackthis log

Please go to this techspot guide and follow all processes then attach a new hijacktihs! log.
Good luck.

Please attach logs instead of copy pasting.
Please visit the 8 step malware removal thread sticky located at the top of this forum.