I see I'm not the only one had had this problem. Starting around last Sunday night to Monday morning I'd get these annoying popups when my computer started up (p-07-0100...kmode_exception_not_handled) and it'd get REALLY laggy, not to mention the dozens (I'd say about 500 hundred every time I started up or shutdown) pos.tmp files in my C: directory and My Documents that I could not delete (The instruction at "0x01d62739" referenced memory at "0x02354e50". The file could not be deleted), as well as 2 desktop icons that would come back every time I deleted them.
Now, I don't know if this will work for everyone else but after going through a lot of other spyware removal programs I downloaded a free version of PC Tools Antivirus (http://www.pctools.com/anti-virus/) and after about an hour of scanning this thing found around 20 infections (at least half of them worms/trojans) and deleted them. I restarted and presto I could finally delete the tmp files and no more popups or little red X icon on my toolbar that would make popup messages. Only thing is I still have the red X icon on my C directory, but it seems to have fixed everything else.
Also, I have no idea if it was related, but in my effort to track down the infection I find an icon with a yellow/orange hard-hat that kept showing up in my C:\Documents and Settings\(your windows login name)\Local Settings\temp folder. I'd delete it but it'd come back sometimes with a new name (also found the name in my registry and other folders). After I ran PC Tools Antivirus I deleted it and it was finally gone.
Also, upon running one of Windows Malicious Software Removal programs (which took well over FOUR HOURS) I noticed there were THOUSANDS of hidden zip files in my windows/fonts directory that I hadn't downloaded, but their mod date was after I the tmp files and popups started happening. The files were hidden so I had to go to the fonts folder, hit search, then hit Enter to show everything in the folder and I swear it had to be well over 5,000 of these zip files all with movie/DVD names. Also, there was a "muufcdpn.dll" file that I believe was related that I quarantined and deleted.
Like I said, I don't know if this will help anyone but from now on I'm running both this PC Tools Antivirus program and Spybot on a regular basis, and I'm using Firefox instead of stupid Internet Explorer since I know that's probably how I caught the virus in the first place. Hope this helps someone else out there.