Computer Problem. Added image of unknown exe file

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Squinge:
Have you tried doing a system restore?

Charley:
yeah but for some reason it was switched off and when we turned it back on the only system restore point was today which wouldn't be much use!!!

Char
xxx

Squinge:
What is the exact problem you are having with your computer?

Charley:
It crashes when usin programs, such as paint and things become unresponsive, occasionally the whole system will crash, also suddenly a new .exe file has appeared on my desktop and when ever i try to delete it, it reappears again. I tried to make a screenshot and save it as a picture with paint but it keeps crashing. The only thing that seems to be workin at the moment is the internet. Also when i try to use IE it just says that it has performed an illegal action and shuts down, i normally use Opera but since this my computer been dodgy i can't click on stuff like Ebay to place a bid and buttons like that and can't use IE to get around this problem. Also my passwords on sites have been suddenly deleted, cos i had to log in to this site which i never have to normally do. When i boot up the computer, it always Nwiz.exe has been shut down which is part of the program for graphics card, do you think i should just format the drive?

EDIT: Now i'm getting stuff like this: Generic Host Process for Win32 Services has encountered a problem and needs to close.  We are sorry for the inconvenience. And pop ups sayin IE has perform actions and has to close down even when i haven't tried to use it!

EDIT II: The reason i think this is a virus is that someone sent me a message sayin Are these photos of you?... with a link, when i clicked on the link i immedietly thought after, this is dodgy and ever since then my computer has been messed up. Normally i'm not as stupid as that to fall for stuff!

EDit III!: this is a piccy of what appeared on my desktop and when i delete it appears again when i boot the computer. Computer seems to behavin itself at the moment!

Char
xxx

Charley:
Now when i boot up, certain programs will work while others don't and if i reboot, programs that were workin before stop working! Anyone any idea what this could be?

Char
xxx

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