Naw its cool. It said it wanted me to stop running my virus scanner.. which makes sense.. but at the same time made me nervous because the virus was doing weird things. I tried to use yahoo search at one time and it just said that a virus was preventing me from doing it. I jsut got nervous lol.
yes...be a lemming and pay at least 2 times for a computer because its shiny and has neat-o commercial...then be stuck with that computer for longer than you should because you gotta save up for the next $2000 macbook. (which cost you 400-600 if it was a laptop)
Fake alert is a bitch. Once it gets installed it also acts as a back door for other malware to install (in fact... I do believe money is changing hands between malware authors there) There most likely was some sort of exploit that allowed it to get installed in the first place... something where just browsing a page may have allowed it to be installed. Make sure you OS is updated and all add ons Flash etc... are up to date. Change your PW to your Email and facebook etc... verify you didn't spam your friends unknowingly. =) Sometimes malware will change your DNS settings to send you through a bad DNS server that starts sending you random crap when you search etc... so you might want to check that too.
Here is another free tool that is cool. http://us.mcafee.com/virusInfo/default.asp?id=stinger When you run this choose preferences and set the Hueristic check for network files to medium or higher.
I would run a restore if I were you. Just go back a few days and then run all your anti-virus stuff again.