What is going on is, based on the findings of MSE, it appears your computer is infected with a rootkit known as ZeroAccess. ZeroAccess (Max++) Rootkit (aka: Sirefef)
is a sophisticated rootkit that uses advanced technology to hide its presence in a system and can infect both x86 and x64 platforms. ZeroAccess is similar to the TDSS rootkit but has more self-protection mechanisms that can be used to disable anti-virus software resulting in "Access Denied" messages whenever you run a security application. For more specific information about this infection, please refer to:
This type of infection allows hackers to access and remotely control your computer, log keystrokes, steal critical system information, and download and execute files without your knowledge.
If you do any banking or other financial transactions on the PC or if it contains any other sensitive information, then from a clean
computer, change all passwords where applicable. It would also be wise to contact those same financial institutions to appraise them of your situation.
I suggest you take a look at the following link: How Do I Handle Possible Identify Theft, Internet Fraud, and CC Fraud?
. If you wish to format, there are very helpful tutorials here at Seven Forums on how to proceed.
Should you wish to attempt cleanup, we can try, however, no guarantees that you can trust it will be 100% secure afterwards. In addition, since you have already attempted removal, not knowing what has been done, those attempts may make it more difficult to remove.