Heh, Cherokee, I'm up at 5;30 for work so 22.37 is usually past my bedtime
AVG is purely Anti Virus.
Spyware/Malware is totally different to viruses.
With the joy( OK only if S&M is your thing) that is Windows you need protection on so many levels
AV
Firewall
Malware - programs that try to do damage or just hog system resources
Spyware - programs that report info back to comapnies e.g. how long onlibe, what sites you visit etc.
The problem is that it is nigh on impossible to find a single app that will do the job and in the case of malware/spyware you seem to need at least 2 apps of each type to get full coverage.
The one you mention is called Hi-Jack this and is a particularly nasty one. There are many articles about removal and I'm afraid they aren't easy for teh non techie user to follow. You effectively need to boot your PC without using the hard disk, so thats either your windows rescue disk or a Linux live CD, then in c:\windows\system32 there is a file called ntos.exe remove it ( linux booted CD) or rename it to ntos.aaa( Windows booted). On reboot, if you had to rename it then now run a fully upadted Spybot and it should remove it. If you used Linux your done.