Computer has been taken over

I am working on my brothers E-machines and he seemed to have gotten some sort of a trojan/worm/virus of sort. In the bottom right next to the time says VIRUS ALERT! It also has made the C: drive disappear from My Computer, along with lots of pop ups about virus warnings. It will not let me install Spybot Search and Destroy. When I run a Hijack this report it won't allow me to save the report in Notepad. Microsoft says that it is closing down in order to keep it safe. And when I try to upload the file, it just closes down HiJack this. If I try to go to Avast's webpage, it says that the page cannot be displayed. I have tried cleaning things up, using Ad Aware 2008 and Spyware Blaster, but it just didn't seem to do anything. The backgroud is a dark blue for the wallpaper and the Control Panel is gone. I know that things exist, cause I can get to them through workarounds. I am hoping that someone might be able to help.

Because not being able to create the .txt report, I only have 2 screen shots. Is there any way I can get these in here somewhere. I tried to attach them, but they need to be too small in order to comply, and nobody would be able to read them. So I have a hijack this report, in summary, and want to see if I can get some help from any of you kind people that I really appreciate!!!!

Thanks in advance for your time.

Hi

Download ATF (Atribune Temp File) Cleaner© by Atribune to your desktop.

Double-click ATF Cleaner.exe to open it

Under Main choose:
Windows Temp
Current User Temp
All Users Temp
Cookies
Temporary Internet Files
Prefetch
Java Cache
*The other boxes are optional*
Then click the Empty Selected button.

If you use Firefox:
Click Firefox at the top and choose: Select All
Click the Empty Selected button.
NOTE: If you would like to keep your saved passwords, please click NO at the prompt.

If you use Opera:
Click Opera at the top and choose: Select All
Click the Empty Selected button.
NOTE: If you would like to keep your saved passwords, please click NO at the prompt.

Click Exit on the Main menu to close the program.


Please download Malwarebytes' Anti-Malware to your desktop.

• Double-click mbam-setup.exe and follow the prompts to install the program.
• At the end, be sure a checkmark is placed next to Update Malwarebytes' Anti-Malware and Launch Malwarebytes' Anti-Malware, then click Finish.
• If an update is found, it will download and install the latest version.
• Once the program has loaded, select Perform full scan, then click Scan.
• When the scan is complete, click OK, then Show Results to view the results.
• Be sure that everything is checked, and click Remove Selected.
• When completed, a log will open in Notepad. Please save it to a convenient location. The log can also be found here: C:\Documents and Settings\Username\Application Data\Malwarebytes\Malwarebytes' Anti-Malware\Logs\log-date.txt
• Please post contents of that file & a fresh hjt log in your next reply.