Hmmmmmm...interesting...
Before you start reading, I'd like to request you to take patience as I have included links that are important to your current problem. Just bear with me and read on. I know it it very difficult when you are hit with what's happening but to resolve it will require a bit more patience and effort.
Don't buy/replace anything just yet as mentioned.
Have you actually run anything yet as to determine if you really have a virus or not? Are you really infected?
(a) The Avira rescue cd is a good one. Dr. Web Live CD is also a good one too. There is a Superantispyware portable that can be loaded on to a USB stick and will run once it is inserted. Just go to a rental shop or internet cafe download it and have it burned there. Pop it in the cd drive.
The first thing that you have to acomplish you should be able to confirm "if" you are really infected or not. You will have to go out of your way to get a "rescue cd" or "USB stick" for a boot-scan to be performed.
How to use AntiVir Rescue System
Avira Rescue System Booting from USB stick
Dr. Web LiveCD
SUPERAntiSpyware Portable Scanner
Removing Viruses from a PC That Won’t Boot
Now if you are infected, those suggested live cd/rescue system will get rid of it and allow you to boot normally. From there you will have to scan again for remnants either in SafeMode or normal Windows mode. Most incidences of infestations will require you to perfom a repair install(that is if you got pretty banged-out due to infection). But if the pc is "cleaned" (after AV scans and 2nd/3rd on-demand scanners + your pc is okay then you can now go for system imaging).
(b) While reformatting is suggested and there is a Windows 7 cd available (you can request a recovery cd from the manufacturer), I'd go for a full DOD-wipe. Low level formatting cannot get rid of MBR viruses. It will stil be there.
Seagate Seatools (ISO image to be burned to a cd) / Seagate DiscWizard /Acronis True Image for WD has very good wiping capability and it's free to use. It can work with non-Seagate drives. The workaround is when the “No Seagate/Maxtor drive detected error” screen appears, press and hold the “Alt” key, then type the two letters “to” (for tech override), then click the “OK” button. Then DiskWizard opens fine these directions are direct from the Seagate tech support forum.
Plus when you get up and running from this "nightmare", you can use it (DiscWizard/ATI-WD edition) to make an system image backups and (if possible) never have to reformat again. Paragon has this capability also. Full wipe would be better than low level format.
Links are here:
About MBR rootkit
Hardware Level Virus on Laptop
Seagate DisWizard
Seagate Forums on DiscWizard
Western Digital forum on DiscWizard and ATi-WD edition
Paragon Backup 2010 Free (Advanced)
Later you can ask SIW2 about Paragon apps.
Some good read here:
Am I Infected? What Do I Do?
Using Knoppix and Clam Anti-virus to Scan Infected PCs
After you have resurrected from your nightmare and your laptop is functioning okay, you might consider reading this:
Securing Your PC and Data
Download the attachment there and adapt it.
The previous focuses on "infection". BUT IF YOU ARE NOT infected, then diagnostic tools is what you need.
Good luck
