spyware issues

running windows xp pro on sp1 right now - tried to reformat it but it wouldn't let me, so I installed a fresh copy of Windows. Didn't know if I should update to SP2 before taking care of this or not. I've gone through everything on your "read me first" thing. went through everything in safe mode, etc. Everything seems fine except I get this one pop-up still that says...

Title is "Messenger Service"

then reads "Message from FROM to TO on 9/3/2005 9:23:21 PM

STOP! WINDOWS REQUIRES IMMEDIATE ATTENTION.

Windows has found 38 CRITICAL SYSTEM ERRORS!"

from there it wants me to go to "www.regprofix.com" and download stuff. if i hit ok or X it out it popups another 3-5 times.

Spyware was able to remove everything it found.
The virus scans found at most 51 viruses and removed 86 infected files, but said it couldn't fix them all. Not sure if this is a spyware or virus problem but I figured I'd start here.

Trying to think of what else you need. It's a friend's computer I'm trying to fix so I may be sporadic in responses. I told her to just buy a new harddrive so I wouldn't have to deal with it.

Couldn't find anything like this in forums unless I missed it. Let me know if it's already in here or whatever other info you'd need. Thanks in advance for whatever assistance. You've helped me once before and were great. Much appreciated.

-Matt