Spyware Problems [I Spy Now]

Question

My computer told me this spyware called ISpyNow has infected my computer. Since then, I havent been able to use the internet, and it freezes my computer whenever I try to act against it using an Anti-Spyware program. I went into Safe Mode, both normal and Network, and it wont allow me to install or use any anti spyware, saying that the Admisitrator has set policies to prevent this installation. Im only on here by luck; it wouldnt even let me use messengers before.
If I could get some advice, or hopefully some online tech support, that would be lovely. Im using a Dell Dimension 3000 with Windows XP Home Edition, with Firefox as my main browser, due to IE's stubborn behavior that began two years ago. Oh, also, I use BitDefender as my main Anti Virus. I havent been using Anti-anythingelse, but I did install Search And Destroy anti-spyware that was given to me by my computer repair teacher, but in safe mode it says it hasnt been installed. I hope this is enough information to get some good results. Ill be glad to answer any further questions.
PS: System Restore will not work. Ive tried multiple times, but it stops on the last page. I hit next, and it stays up without doing anything. My anti-virus scans run, but they find nothing.
Message Edited by Desdemona on 12-03-2008 03:48 PM

Answer 1

This is a nasty sort of infection. Here's a removal sent you can use to put it into a somewhat useable condition. After this though, I would reccomend taking it to the local presinct to get it de-bugged, but this will make it so you will have the best chance of success.
1: find a USB flash memory stick. Size does not matter.
2: on another computer download these three files:
Malwarebytes Antimalware
Malwarebytes signatures
Combofix
3: once these are downloaded, go to the infected computer and restart it, while tapping F8 like mad. It may beep, but this is ok. Soon it will come to a new menu, asking if you wish to enter Safe Mode at the top. Choose that one.
4: once in, it may ask you to select an account. If it does, chose Administrator.
5: A box will pop up explaining that we are in safe mode. Choose ok.
6: the desktop may look a little wonky, but this will go away after a bit.
7: plug in the USB memory card.
on the memory card, INSTALL malwarebytes Antimalware.
Once it is installed, run the update file. This will put in the newest detection rules into it.
8: run Combofix. This program will take a while to run, but it is VERY through and removes many rogue spyware infecitons. It will restart your computer.
9: once it is restarted, it will make a log. Ignore it unless we still have issues.
10: click start, right click my computer, and go to properties. In thi new box there is a tab that says  System restore. Check the box that says "turn off system restore". The infection may hide in there to restore itself. Click ok, and wait for 45 seconds or more.
11: run a full scan with malwarebytes.
12: once this is done, remove anything it finds, and leave the Combofix log on the desktop for the Agent, and take it in for a full virus removal.
What I want for Christmas:
In-store agent position at the Burlington, WA precinct.