My computer is running Windows XP SP3

1. Adware/malware W32.Myzar.FK@yf messages appeared.
2. Ran AVG 8.0 and it vaulted Trojan horse Generic_c.IKY object.
3.Adware popups continued to appear in Safe mode and a new problem appeared in that
no programs would now run from normal mode, task manager would appear at CTRL-
ALT-DEL but PC would hang and hourglass appear. Not all icons refresh on desktop.
4. Used SmitfraudFix.exe from safe mode to eliminate Zlob virus and pop ups disappeared.
5. Still trying to fix the problem that seemingly occurred after running AVG. No
programs/utilities will execute in normal mode, task manager can be displayed but it
does not execute, just hangs up with the hourglass displayed.

What is the source of the problem and the solution?

thanks

if this is free version of AVG, uninstall it and then download and run malwarebytes' antimalware software