Need some help

First off, I'm fairly new to posting in forums, so please bear with me and be gentle.

I've been using the Read and Run Me First guide for awhile whenever I accidently aquire a virus of some sort, and it has always worked in the past.

This time however, I couldn't even finish it. I follow the directions explicitely, and everything went smoothly until I got to the Spybot S&D part.

I followed the setup exactly, didn't install teatimer, checked for updates, immunized, etc.

Then I let it run. I was shocked to see over 20,000 instances of Win32.Agent.cmn was found.

I knew it would take a very long time to delete all of that, so I put on a movie and let it do its thing.

I came back to see that I recieved an error message about not enough memory or something similiar.

I was completely locked out for the rest of the night, I could move the mouse but nothing was responding, no ctrl alt del, nothing.

So I restarted my computer.

And then the madness began. On startup, nothing would load, and I would get a black box and an error message saying CMD.exe error with a bunch of numbers. When I clicked okay, it began to popup and close the same box over and over again, making it darn near impossible to do anything.

I went to task manager and started explorer.exe with New Task. My desktop and start button etc all came back and the boxes went away. I decided to re-run Spybot S&D and it didn't find any instances of the afore mentioned virus.

At the end, it asked me to restart, so I did.

On the blue welcome screen before the desktop loaded, I got a message saying userinit.exe failed to initialize, click ok blahblah...

After that it just shows my background, no icons, and when I try to do any hot keys or ctrl alt del, I get a similiar message to the first.

After toying around with restarting a couple times, I finally got everything to come up, except for the fact that everything seems to have reverted back to old windows colors (gray start bar etc)

So I rebooted in safe mode and now I'm here.

I figured I'd ask here because this site has helped me a lot in the past.

I have Windows XP SP3 and internet explorer 7, and I use AVG.

coincidentally, AVG seems to have deleted itself somehow, but whenever I try to reinstall, it says it's already on my computer. But I can't open it.

Anyways, thank you for your time and hopefully your support.

If I can elaborate on anything or supply any more information, I will do so gladly.

Matt