Problems with applications & item names, possibly related to malware?

Question

I apologize for posting twice about a similar topic but I found out a new important piece of information that could possibly help others as well.
Previously I asked why safari keeps shutting down and citing the plug in "microsoftgenuine.so" and was told it was the flashback trojan. Is this trojan really infecting as many computers as they say or are users overreacting? The dr.web thing told me I did not have it but when I ran "defaults read ~/.MacOSX/environment DYLD_INSERT_LIBRARIES" in my terminal, "/Users/Shared/.MicrosoftOfficeGenuine.so" showed up. Offfffff course. The other two lines that I was told to put in my terminal came back as "do not exist" though. I have the report crash if needed, from safari.
Also, some right click options as well as my devices display names such as n152 and SD3 instead of "open with" etc.
This problem began long before the application crashes.
I'm quite careful- do not enter my password unless I know why I am being asked for it, do not update software except from my desktop (aka don't go to 3rd party sites) and I run sophos as recommended by my school, although another user told me it was crap. I don't believe I intentionally downloaded any program and certainly did not install one asking for my password except for standard things that I downloaded from trusted sites.
Also when clicking on links from pages I will be directed to an entirely different page. It's usually when I click on a link from a google search. It will take me to a yellow pages search or something that is minutely related to my search terms. I'll have to click "back" multiple times until I'm returned to the initial page and when I click the SAME link a second time, it takes me to the site it should.
Annnny tips would be appreciated.  Unfortunately I do not own my own hard drive, much less the multiple ones suggested to me. I back up school files on discs occasionally but that is all.
Thanks!

Answer 1

Current recommendations is turn Java off.  Generally you don't need it.  Do not confuse it with Javascript which you do need for your browsers.   
You can disable in the browser you are using and/or more globally using the Java Preferences too (in Utilities), General tab (uncheck the checkboxes).
More new tricks from Flashback
How to check for and disable Java in OS X
Protect Yourself from the Mac OS X Java Vulnerability
If it turns out you need it for some specific application or web site that you trust then turn it on only when running that application or visiting that site. If your work requires Java be enabled then at least disable it in your browsers.
If you do need to run Java, be sure that you pick up the Java Software Update 7 posted recently that takes 10.6 and 10.7 up to Java SE 6 revision 31.
Flashback is a moving target with lots of strains (various versions, permutations) and changing all the time.  So who knows what's next?