Skywalker.exe ??

Layback Bear said:

C:\Windows\System32\config\systemprofile\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\SkywalkerSetup[1].exe

The location is VERY suspicious, to say the least. Maybe I'm missing something, but here's what I think.
The folder is the IE cache, so someone or something downloaded it using IE. The browser's cache is per-user based. But what I see very bad is that it's in the system user profile (nt authority\system) which should NEVER access internet, let alone using IE. The file itself is probably safe to delete, but have a look at all the running processes to see if there is something suspicious (remember to elevate task manager and look at every process and service).
It would be a good idea to do a full system scan with a good, updated antivirus. Maybe I'm wrong, but I think there is more in the system beyond that strange file.