Sorry I forgot to mention that it is running Windows XP Home.
That was my mistake. You had already put in your OS which appears to the left of your post. I had scrolled down to re-read what you said in the "Reply" window and all that information does not appear in the posts unless you click on "Review the complete topic (launches new window)" at the bottom. That's caught me a few times already in the wee hours of the morning.
You sound like you got the handle on how to repair the OS. After you get the CDs and repair the OS, please check the malware removal instructions.
Once you've completed the steps, please post in the other forum : Malware Removal - Hijack This Logs Go Here.
Please be patient and someone will get to you to read your log and help you. This is one forum that is really busy.
If you have an OS problem then please post back here in this forum.