Busy Benz - "I received notice from two different entities"
What told you that you had viruses or problems with your system?
It sounds like your system may be hijacked. Run that spyware. It probably downloaded something malicious when that message popped up. You can download the anti spyware software directly from the microsoft site and or Ad-Aware which are both free through download.com.
Also, I would reccomend that you put more than 128MB of memory in your machine once it's cleared up. XP is a memory hog.
