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I have been called on at least a dozen times since November to fix this kind of problem after the fact, lots of variations in the screens that come up. This kind of thing consistently gets through Norton, AVG, McAfee, MSE and others, which, considering how widespread it is, is disgraceful.

My solution after the fact, which has worked almost every time:
Boot with f8 to safe mode with networking.
Check Internet Connections in control panel or proxies and turn them off, even if you use other browsers
Check c:/windows/system32/drivers/etc/hosts and remove anything other than 127.0.0.1, even if they say they were put there by an antispyware program
Check Network Connections in control panel for DNS hijackings
Check other browser connections for proxy settings and turn them off

These checks will generally let you download AND update Malwarebytes Anti-Malware AND Super Anti-Spyware from Download.com, which have caught and cleared the problem almost every time.

Twice these things didn’t work and I removed the hard drive and ran the same scans on my own computer with a usb disk controller harness and the damaged disk. One worked, one didn’t.

Since I make money fixing problems like this, I am glad it happens. Seriously though, why would anyone put themselves through this sort of torture? Dump Microsoft and get a secure system plus you will save a fortune in time and money.

This is just another example of the failure of Microsoft to produce a truly secure system. If Microsoft simpled used the same techniques that are routinely employed on *.nix systems, along with its handling of files, none of this would have occurred. I assume you have heard about the Epsilon data breach. Just another example at Microsoft’s failed attempt to provide security for its users. Honestly, why anyone with any common sense would use Microsoft for Web browsing or reading e-mail is beyond my comprehension. There are better Web browsers and far superior MUAs available for the non-windows user. With the possible exception of MS Office, there is not a single program that Microsoft produces that is worth the hassle of using Windows and its required AV/Firewall, etcetera paraphernalia just to attempt a mediocre sense of security. Microsoft != Security is a well understood concept.