Personal Antivirus "pav.exe" Strange Experience

A computer had pav.exe on it and had popups from the program showing that there were bogus trojan viruses infecting the computer. The person using the computer claimed that they had downloaded the program yet if you type this program in on a search engine, it is difficult to find the program...It's just removal type page results.

I tried to fix the computer, first option was bringing up msconfig and disabling pav.exe in the startup tab. After reboot, the program no longer showed up on the task bar. Then I tried deleting the file folder. Then something odd happened, the computer rebooted on its own and would not load into windows. I tried going into safe mode, and was able to at least run smitfraudfix for the sake of it being a cool program but nothing was found in the scan. Eventually the computer rebooted on its own while in safe mode. So then after that reboot, I could not access safe mode...the computer's busy light was just flashing a lot.

I unplugged the computer and took the computer to my home but something odd happened when I tried to plug in the computer at home, the power supply light would flash once and did not run at all! I had to remove the faulty power supply and found my first cpu's power supply from 97'. It worked great. The next issue that arised was the cd-drive seemed to light up but was not reading the boot cd. The boot cd would not load like it was supposed to from start up. So I removed the drive and placed an older one in there. It worked and the boot cd would load. Question is, how does the power supply and cd-drive go bad if all you did was unplug the computer from one location and take it to your house for further care?

I was able to use the boot cd to do a virusscan of the hard drive. Mcafee ran from the boot cd but no viruses were found.... I ran chkdsk but nothing was found. I ran a defrag program but nothing changed. I looked at the file system and noticed that a bunch of .dll files were missing.

In a related experience, another computer was sharing files on a network with the computer above and had similar problems except it did not have pav.exe on it, instead it seemed to randomly reboot in windows and it was running avg antivirus...eventually I ran system restore on that computer but somehow the computer would start automatically rebooting after about 30 minutes of use.. I kept restoring the cpu in safe mode until, the computer froze while bringing up system restore in safe mode! Had to do a hard shut down and found that the computer would not turn on after the computer froze while in safe mode. The power supply had the same problem as the first computer's power supply and yet the computer was protected with a surge suppressor. Any ideas or related experiences? Thanks for reading.