You may need a little help from a special removal tool designed to remove fake wares. Fakerean removal tool
Another free security for seeing Windows run normally again once a malware is taken offline would the other older VIPRE Rescue Program
This runs from a temp folder without any installation required.
Both of those are from GFI there while you will still want to run a full security sweep of the drive once you have given each a try. Once you have Windows running normally again try downloading the 30day trial version for VIPRE Internet Security 2012
and run a full system scan.
Following the system scan turn the System Restore off. That will automatically clear all restore points ruling out any chance of reinfections from any points you have now while typically viruses not fake scam wares would be the thing to see them corrupted. Later you turn that back on and start seeing all new clean restore points created fresh.