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Solve : Help. Windows Problem. Possible Virus??

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I STARTED up my computer this morning after using it fine LAST night.  I am able to log into windows. Everything looks as if it loads properly, however, midway through uploading the green light remains fixed and my computer stops uploading.  It seems that computer becomes busy and makes the same repeated sound over and over again.  I am unable to open any icons on my screen.  I am unable to do control+alt+del to reboot.  The only thing that I can do is hold the power key down and restart.  
 
I have an anti-virus installed on my computer and SPYWARE software as well that I actively use.  I have a file called virus1.exe that uploads on my computer everytime it is restarted.  It has been showing up for the last couple of months. It flashes briefly in a black box on my screen (the C prompt, I belief it is called) and disapears.  It is supposedly quarantined by my anti-virus PROGRAM.  
  
I am not sure if this is somehow related to what is going on now.  Probably not.
Any ideas as to what this problem might be?  Any suggestions would be greatly appreciated. Thank you!!![size=14][HIGHLIGHT]DOUBLE POST ALERT[/highlight][/size]



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