Ouch, that is a nasty virus.
It is actually part of a larger trojan called Win32.Agent.tdd. Which copies files all over your system.
Here's the first thing to try.
1. Download Spybot Search & Destroy and run it. http://www.safer-networking.org/en/spybotsd/
2. Delete all of the registry keys listed here: http://forums.spybot.info/showthread.php?t=50370
Also make sure your computer is protected by Microsoft Security Essentials
With that kind of virus though... there is no way to know if your computer is ever 100% clean again. I'd also create a new Windows user account and trash the old one.
Though personally if I ever suspect my system is infected I always reformat and start over. (With Windows 7 it's a simple revert to last clean system image)