SCB_,
Yes you can run Spybot S&D from a CD. Just copy the entire Spybot - Search and Destroy folder and sub-folder contents to a CD in exactly the same structure as currently found in Program Files from your own PC. Make certain you can view hidden and system files since portions of the installed program are not normally visible.
When at your friends house, insert the CD, browse to the Spybot - Search and Destroy folder and run SpybotSD.exe or if that is blocked, look for a .SCR file with an obfuscated name and try running that instead. Spybot S&D will create its usual recovery and other folders on the hard drive of the PC itself and simply use the CD for any required program components. Also, try running in Safe Mode initially if it still won't run, then switch back to Normal Mode after cleaning whatever it finds there.
Of course this will only contain the current detections updates and can't be updated, but once you have your friends PC cleaned you can copy the entire contents of the Spybot S&D program folder to Program Files on that PC and update it there. The CD is just to get you past the initial problem of being blocked by malware.
This still might not succeed, but hopefully it will get you a foothold to allow Spybot and other tools to clean the PC. It's probably best to still have the results of a HiJackThis log reviewed in the Malware Removal forum here, though that generally takes a couple days for an initial response, so I'd try with Spybot S&D first.
Bitman