Really Difficult Virus

Okay, It started off when I downloaded a Zip Archive containing a DvD Player. As soon as I opened this file (I made sure that all other programs were closed before doing so) I started having all kinda of popups about security threats and a so called "VISTA Security Center" Which was on my taskbar, and would not let me close it, also had the popups saying that I had viruses and must download their software, which I ignored. I hit Ctrl Alt and Delete and i have a message saying "Task Manager has been disabled by your Administrator" which is odd because I am the only user and have the full administration rights. Then I see that it had changed my desktop to another advertisment saying that I had a virus, which I ignored. I go to my start menu, on it the All programs, and all other shortcuts had been removed, and my clock had been turned to Virus Alert.
So I turn my PC off and then start it up in safemode, where I ran the AVG Antivirus, and after it had completed, finding 30 Viruses and Trojans, I turned my pc offf and started it normally, Now AVG still gave me virus warnings whan I logged on, so I requested it move them to the Virus chest, on the second virus warning, when I took the same action my explorer bar dissapeared and is not funtcioning. I went into AVG and deleted all the viruses in the chest, then rebooted, and again when the second warning came up, the explorer bar dissapeared.
AVG log attatched
Anyone help me here or Should i put my windows disk in and re format my HD?

 

Oh and it has made my C:/ Drive dissapear