I saw that you already gave a detailed explanation on how to remove trojan-spy.html.smitfraud.c, however this explanation requires running programs in windows.
I am running windows 98 and am getting the same startup blue screen trojan message as described, but I also get a system error pop-up. when I click the "close" button the pop-up reappears. meanwhile I cannot run anything in windows, so I am a bit stuck. I tried booting into safemode but I still get the trojan message and the annoying error pop-up. the only thing I am able to do is to boot into the command prompt, but don't know what I should do from there (delete/edit any files?).