"Some dangerous viruses detected" trojan

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Hello,

Whenever I open a Windows folder, I get the following message:

Attention [username]! Some dangerous viruses detected in your system! Microsoft Windows XP files corrupted. This may lead to the destruction of important files in C:\WINDOWS. Download protection software now!

I scanned my PC with ClamWin, Adaware, and Malewarebytes Anti-Malware. Several infected files were detected and cleaned, but the trojan still remains.

Attached is a log file from HijackThis.

This is the first PC virus I've got in years; is my system totally compromised? I only use my Windows partition for PC games, so nuking it would be annoying, but relatively easy if this infection compromises my security (should antivirus and anti-spyware programs fail).

Thank you for your help.
 
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