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Unable to update antivirus or access certain sites, Possible reader_s.

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Hello to you all, longtime fan of this site, helped me many times. Anyways, I'll cut to the chase

So this all began around a week ago as my AVG 8 noted some viruses in my system, it attempted to remove them but was unable to as apparently they couldn't be found. Some viruses found included the Virut virus

Basically my PC began to slowly deteriorate, I uninstalled AAVG and tried avast, again to no avail.
I then downloaded Microsoft Security essentials and this was unable to connect to the internet to update itself.

This is where things got very bad
I turned on my PC and entered my password in the login prompt to then be greeted with a blank screen with nothing but the cursor. doing a ctrl-alt-del only prompted the message
"logon process failed to create the security options dialog"
I then tried to log in to the guest account which was successful but there seemed to be something very wrong, certain websites including the microsoft website and any of the antivirus sites were either "not found" or I was taken instead to an ad site.
After restarting the PC i couldn't even access the logon screen, The entire screen was black save for the cursor.
I put in the windows disk and managed to system restore to a time where my logon functioned.

I downloaded Malewarebyte's Anti-malware software which found the READER_S.EXE virus, it reccomended I reboot to delete this file properly. Yet every time I do and run the scan again it is still there.

So my current situation is this:
I can run windows nromally and log into my own account.
Yet I cannot update any antivirus software nor accces any of their sites.

Basically, I belive the cause of this is the reader_s.exe virus. I've googled some ways of trying to remove it including something called SDfix.exe which I had to run in safe mode, yet it did nothing.

I'm at my whits end now, I dont know how to remove this malware
I turn to you fine people to save my PC from having to reformat
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I know you aren't supposed to bump your own topic but Ive done everything that is asked on the sypware/malware thread and it's still coming back and causing chaos.

Please, anyone out there have any ideas how to remove this thing without having to wipe my HDD?
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