Malware - a fake defragger, yet unspoken of as I have seen it

I just spent the past several hours using the extremly useful forums and programs offered on majorgeeks, so I thought I'd try and give back some info, in case there are others with the same problem.

Another user on this computer noticed she started getting warnings that the computer "cannot find hard drive" or the that RAM usage is dangerously high and there may be critical memory loss, loss of private data, etc.
It recommended that we defrag, or else! (essentially)
Of course, it takes the initiative to start up some bogus defrag program and starts scanning, and you are not able to close the window.
Avast tried to blocked site from coming up - searchjewel.org/dfrg/dfrg
And noticed it was involved with a file 3964937.exe
the same file popped up in hijackthis in a temp folder. Just fixing it wth hijackthis didnt get rid of it, I had to go to C:\Documents and Settings\"User Name"\Local Settings\temp and I simply dumped it in the trash and deleted it. I know there are probably more permanent deletion methods, but I am a newbie, so there. Seems to be fine, my computer is no longer crashing.
And to further reveal this programs malice, its uninstall shortcut was a shortcut to the same program I wanted to get rid of! It also assigned a background image (3964937.bmp or .jpg, cant remember due to the fury which with I deleted it) to the computer so as to create the ambience of absolute chaos... which can only be solved by updating your trusty new defrag software... for 70 dollars. Lame. It also had a nice little graphic and called itself HDD Defrag.
So after deleting all is back to normal, my old defrag software is up and running. And just to be sure, I analyzed my computer, and wouldn't you know it, no defragging needed.
Hope this helps someone!
-Jigatnu