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Fake Security Warning, Trojan.W32.Looksy

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Hello all, First time posting to this forum. This week while I was out of town (of course), my son was checking his e-mail on my wifes and my computer. We are running WinXP, MCE, sp2. We have McAfee installed, and use Earthlink toolbar and e-mail. My sons email is not as locked down as ours is. Anyway, later on when my wife was using the computer, she called me and said that a warning had popped up saying "Security Warning – Trojan.W32.Looksy detected on your machine. " Some official sounding info about the virus, and then the option to remove it now. I told her to just X it out. She clicked the X, and said it immediately started to download a new web site, and then the entire screen turned red with a hazard warning sign. I then told her to turn off the modem, and to run thee McAfee virus scan. She called back later and said that the virus scan had found some items/cookies that my son had gotten from youtube, but otherwise the system was clean, but the red screen was still there. I told her to leave it, and I would look when I got home. When I returned, I discovered that the red screen was actually just a picture, and 3 icons had also showed up on the desk top. I found where the pic files where and deleted them. I then restarted the computer. Upon restart, got a message saying that the pic files could not be found (for the red screen and warnings on the red screen, but the icons had returned. Ran McAfee again, still said no problems. Then tried to run AVG, but the definitions were out of date (since I rely on McAfee) and the site to download def files had been changed to 127.0.0.1. AVG of course said no probs also. I then turned modem back on and went online to find info about this. Within seconds, started getting all kinds of popups. According to McAfee, popup blocker is off, and the ability to turn it on is disabled. I haven't used the Earthlink toolbar since this happenned, so I don't know if earthlink popup is disabled also. Anyway, can't stay at any site for more than a minute or so before the entire screen is covered w/ popups. The browser (ie?) is constanly trying to jump to a security web site. I managed to download HijackThis and Deckards System Scanner. I turned off the modem again and ran both progs, and ahve the logs from them. Am using a computer from work to start this repair process since I cant work from home right now. Thank you for any assisstance you can provide. If you need the logs, I have them with me at work, on a jump drive. Tom B
Gee Tom B

Sorry to hear about your troubles with your computer, but you must have missed the first entry in this section of the forums.

NEW MEMBERS PLEASE READ

Yeah, I know its a pain but with so many people to help we have to keep it organized. Now if your intent was to introduce yourself in the introduction section and tell something about yourself you are in the right place.

Now if perhaps you are after getting some help removing a problem from your machine…..

Malware removal Goes Here

Regards
Kaz