AAARRRRGGGGGGGG! Malware problem!

OK...Its a work computer....
Acer, running Windows 7, roughly 5 months old. Owner bought it after her old one got what i think is the same virus, fake antivirus bs, "your computer will be in trouble if you dont click on me right now"
Well, of course someone there did it again
it had avast free antivirus & spyware terminator & ccleaner on it.
But now its completely locked out, cant open any files or programs. says that the antivirus and spyware are "uninstalled" and "stopped" but they still show up as programs and i cant uninstall them or reinstall them. I tried following your steps but it will simply not let me run the RKILL program or the remaned iexplore RKILL program...i am at a loss, aside from completely wiping it out what can i do?
lmao....plz any help would be awesome before computers drive me crazy!
thanks

 

That would be a big ol negative, even tried to system restore but it just laughed at me

 

its still not letting me open the program, it asks me if i want to allow the following program from an lisher to make changes to this computer and when i click yes the window disappears and nothing happens.

msconfig works

even tried doing it in safe mode...still nothing wont even let me stop service to running programs in the task manager

 

Ok im doing that right now
Fingers crossed!

well at least its booting from the first cd i made...good sign i hope....*sighs and bangs head against wall*

 

Not sure if its important, but at the end of the diagnosis the
Root cause found:
----------------------
A recent driver installation or upgrade may be preventing the system from starting

should i try one or two others of the cd repair disc downloads?