I system restored two weeks back. I'd reformat although I haven't got a external HDD functional at the moment to transfer files.
I mean, I have a 160GB iPod Classic that I can put into HDD mode if that is any use.
Any other ideas?

If you still haven't been able to get rid of it, then format is the only way to go.
*System Restore.
So, I've system restored a week back and so far when scanning with Malware Bytes I found 1 trace. I deleted it and so far I'm good. Do you guys still recommend a reformat. I've lost my OS Disc and I dont have the money to fork out for a new one right now. Most of the software I use can only be used on a Windows/Mac OS so I cant really go for Linux. Would System Restoring to when I first got the computer be an alternate option than reformatting?
it'l be embedded into the system files and registry by now, whatever you do with system restore. Wait a few days or so and you'll probably find it showing up again.*System Restore.
So, I've system restored a week back and so far when scanning with Malware Bytes I found 1 trace. I deleted it and so far I'm good. Do you guys still recommend a reformat. I've lost my OS Disc and I dont have the money to fork out for a new one right now. Most of the software I use can only be used on a Windows/Mac OS so I cant really go for Linux. Would System Restoring to when I first got the computer be an alternate option than reformatting?
Really a reformat would be the best bet, but try this:
1) Download Kaspersky Anti-virus 2010 trial (30 days, fully-functioning trial)
2) Reboot into safe mode (this prevents the virus from auto-running, howto: http://www.pchell.com/support/safemode.shtml)
3) Install Kaspersky while in safe mode, perform a full scan and remove any threats
4) Reboot, update Kaspersky virus definitions and perform another scan.
Sometimes malware tries to interfere with AV software, so if it won't allow you to download Kaspersky, try downloading on another PC and copying it over.
You said you had a 160GB iPod, surely this would be enough to back up your important files?
I used my FTP client to delete the file lol
get your serial for windows and download a copy then just put your serial in
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