Acer Aspire windows xp hangup at welcome screen?

A couple of days ago I got a message saying that I have a virus on my computer and had to download a piece of software, which BTW downloaded itself. On the Add/Remove programs this piece of software comes up as being 11GB is size. Anyway since this happened the laptop has been very slow at booting, with it being... show more A couple of days ago I got a message saying that I have a virus on my computer and had to download a piece of software, which BTW downloaded itself. On the Add/Remove programs this piece of software comes up as being 11GB is size. Anyway since this happened the laptop has been very slow at booting, with it being unusable past the login screen, only showing the desktop background. With it being slow I have been turning it off by holding the power button, thus causing SCNDISK to run on bootup. Any way, now when I boot up, either in SAFEMODE(tried all options on F8 screen) or NORMALLY the laptop hangs at the blue WINDOWS XP logo screen you see just before where you click for your username. When you press teh ESC key the computer just beeps at me. The laptop is an Acer Aspire 1360 and have tried to use the eRecovery tool (Alt+F10) at post but when I press these keys the computer just beeps and then boots windows normally, then gets stuck. D2D is enabled in BIOS. Any help would be welcome
Update: BTW I cannot get in to Windows, and its not my laptop, a friend of mine has asked me to fix it. He said that a message poped up whilst on the interent saying that he had a virus and that he needed to download this tool.
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