Welcome to BG forums mabhari,
As there are plenty of free online malware removal help forums, such as this one, we would normally just recommend all people be referred to one of these for repairs. All of us who assist in these forums have gone through extensive training, and most, like Touch and myself, also have done many thousands of successful repair assists as well.
As for your C folder issue, sounds like an older type of autorun malware has made changes there. Let's take a look.
To keep them from interfering with the repairs, be sure to temporarily disable all antivirus/anti-spyware softwares while these steps are being completed. This can usually be done through right clicking the software's Taskbar icons, or accessing each software through Start - Programs.
Download
RSIT (random's system information tool) from
here to your desktop. Then click on the
RSIT.exe to open the RSIT display, and click the
Continue button.
If necessary allow it to locate or download a copy of HijackThis as needed.
Once the scan completes a textbox will open - copy/paste those contents here for review please. The log can also be found at C:\rsit\log.txt.
RSIT will also create a second log, info.txt, which will be minimized to your taskbar. Post that here as well please (it will also be stored at C:\rsit\info.txt).
You can break logs into parts and use separate posts here when replying and posting the log files, if needed.