Windows starts to desktop - no icons (after infection)

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I need help solving this. Last night I downloaded a program a friend of mine sent me. I have Windows XP Home Media Center Edition. I have PC-Cillin Internet Security installed. After running the file, PC-Cillin shut down itself and I got a message saying "your computer is infected" with a red icon with a white "X" sitting in the tray. I also got the message from windows saying "your computer might be at risk". I tried to restart PC-Cillin Internet Security but didn't let me. I got a message saying "The file is in use in another process".
After sometime the computer rebooted itself. Now Windows starts fine, I log in with my password but the system gets to show the desktop but there is no taskbar, no desktop icons, no pup-ups, no nothing. If I try Ctrl-Alt-Del combination nothing happens (I see the sand clock for a second), nothing seems to work. I have tried to start in "safe mode" but my keyboard won't let me move to "safe mode" (no keys respond). I tried to run from a CD with Norton Internet Security but the computer won't start from the CD, it goes straight to windows.
Any ideas on how to solve this, I can't run any program...so I can't post anything here...thanks in advance!! (panic is here soon!)
 
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