Task Manager Virus x 100

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After I unintentionally downloaded some sort of exe file off of limewire, I have encountered a significant problem with task manager. What happens is if I restart the computer, no icons appear and I only see my background. Task Manager in the applications section has a CD type icon. I'm not entirely sure how I get it to go but I'm basically using End process a billion times on Task Manager to get back my desktop.
After this the fun starts. A looping virus that says something like "Task Manager failed" pop ups all over the screen and I have to close about 30 of those to get back to normal.

In the folder where the .exe file was downloaded as well as some older folders that I haven't figure out the relation to, there's what looks to be about 100 exe files that range from "10000 playstation cheats" to "maya 5.0 crack" to "WinXP skinmaker". All of these files have the company and description "TaskManager" and the filename 9999.9999.0.9999

If I delete them, they seem to all move our duplicate in other folders. Virus Checks don't catch them even when I turn off system restore. What Can I do?
 
Log From HijackThis

Here is the log. I went through the steps and elimated everything on the suggested list and the problem still exists.
 

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Is there any alternative to this, assuming reformating would get rid of any programs I have? Also, how would I go about doing this?
 
Hooty said:
Is there any alternative to this, assuming reformating would get rid of any programs I have? Also, how would I go about doing this?
LOL you dont want to but first you are goin to have to put everything you want to save in one file and burn that on a dvd. Then u go fetch ur windows xp disk and choose new instal but not on a new partition then when ur comp restarts it should ask you if you want to format or leave drive intact choose format let it format an let it instal and do its thing there u go:) I have the same prob as u but i will kill myself b4 i will ever format my hard drive..........
 
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