I had the same problem, same error message and everything and had to reimage my PC (step it back a couple days). I ran search and destroy, virus scanners ect nothing worked. They all appeared to work then an hour or so later it would all start again.
Mine got progressivly worse so not sure if your is the same. The program/virus/adware/whatever started flooding my C drive with .tmp files. At last count i had like 2000 and you could not delete them. It was a big mess.
AVG is a good free virus program so I second SlyckMyx's advise. Go to
http://www.download.com amd search for it.
You should have a recovery option on your PC. When you boot it up you should see it in the black/blue screen. It should say something like Recover system hit F1 now and then ask you how far back you want to go. You should just pick the day before you started havign the problem. Sorry i dont have more details.