Vundo is a pain in the butt.

Google malware bytes and try to run it. Also go and download the update to the Java SE runtime environment. If you have any trouble doing what I just said then start backing up everything you need and wipe the computer.

I've spent hours trying to fix vundo infections and it just isn't worth the time if the virus has messed with group policy settings.
Good luck and report back!

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-Typos courtesy of my mobile phone.