Security warning.

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I would appreciate any help out there regarding a Security warning message I have. I recently had a spyware problem & after a friend found some recources for me on here(THX to both falcon_eddie & Vigilante) I found a spyware remover & seem to have removed the problem. It located the source(as seen on the security warning message) & program & I removed them. I have since done a search through programs & files & all related files seem to have been removed. The problem I am having is that at start up & on my desktop display, I still have the same message which alerted me to the problem. I have tried changing Security setting etc. as it suggests, but nothing seems to want to remove the message.
Am I safe to browse now etc & is it just a display message OR do I still have a problem in my system?
The message showing is as follows:
Security Warning.
A fatal error in IE has occured at 0028:C0011E36 in VXD VMM<01> +
00010E36. Error was caused by Trojan-spy.HTML.Smitfraud.c
*System can not function in normal mode.
Please check your security settings.
*Scan your pc with any available antivirus/spyware remover
program to fix the problem.
If anyone could provide a solution I would be truly greatful!
 
Check if this is not an off-the-wall background picture.
Rightclick anywhere (but not on the text of that message) on your desktop and select properties. You may find it under the tab Background or the tab Web.
 
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