Once again, a system with AVG Free gets totally owned by viruses.
If you insist on free AV software, Avria's AntiVir product is the one to get.
If you aren't an expert in Virus removal, then a clean restart is probably a good idea, and Windows 7 even in RC form is probably a better option than Vista at this point.
If I were you, I would probably pony up $40 for Norton AV 2009 and then be prepared to call their techs for help in letting NAV clear things out before going through all the effort of reloading the OS from scratch. This assumes you aren't a computer-guy, so to speak.
I would also stop using Microsoft-based internet products on a regular basis. This means using Firefox, Safari, Opera, or Chrome for as much web surfing as you can. For mail, try Thunderbird or Opera or something like The Bat, or stick solely with webmail like Gmail.
-Llama