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Security Warning: Trojan-Spy.HTML.Smitfraud.c

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Here is the deal:

I am running Windows XP on my IBM ThinkPad Laptop. Last night I was surfing the internet when my whole background/wallpaper turned to a blue screen, with the following message in White Letters in the middle of the screen:

A fatal error in IE has occured at 0028:C0011E36 in VXD VMM(01) +
00010E36. Error was caused by Trojan-Spy.HTML.Smitfraud.c

* System can not function in normal mode.
Please check your security settings.

* Scan your PC with any available antivirus / spyware remover program to fix
the problem.

What is the problem? Last night, after this first happenned, everytime I tried opening the internet explorer, popups kept appearing about a Casino, Adware, Spyware, and how to remove those. I couldnt get them to stop appearing, so I shut down my laptop. When I turned it back on, the popus had ceased, yet I cannot connect to the internet. I usually do so via Wireless adapter to get on my DSL network but all it does is say I am connected to the network, but I cannot get anything to run on the internet nor can I use a program like AIM. In fear that something might happen to the other computers on the network, I ejected it and havent put it in since. I have seen other topics in this form (I am new here) in regards to this trojan. I had no Anti-Virus software prior to this, which I know is not smart. However, today I went and purchased eTrust EZAntivirus 2005 software. I installed it this afternoon, but havent ran it yet.

I am not able to get on the internet, so how can I get rid of this assumed trojan?
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