How do i fix this computer proplem ASAP.... very possible virus... Trojan.32.Looksky?

i downloaded an active x add-on from an unknown source in order to view a video. i believe that is what caused all my recent computer problems.

first of all my desktop's resolution was changed and it was covered in a red backround with a picture of a biohazard symbol that said "your privacy is in danger. download privacy protection software now" when i clicked anywhere on the desktop it linked me to a site blocked by spysweeper. after i figured out to return my desktop back to normal i started getting realy strange pop ups. like

"windows has detected an Internet attack attempt.....etc click here to download spyware remover"

i clicked ok but the site was blocked by my spysweeper cause it was a known site for ad/spyware. I aso get a pop-up that says im infected with

"Trojan.32.Looksky"

it says i need to download a spyware detector that takes me to the same same sites blocked by my spysweeper.

I ran spysweeper and quarentined and deleted a few spywares and adwares but i keep getting the same pop ups, i also ran trend micro virus scanner and it came up with nothing. and what makes things worse is the red biohazard backround keeps popping up and i get wierd shortcut icons on my desktop when i start up. the icons are for

"error detector" "privacy protector" and "spyware %26 malware protection"

i delete the shortcuts but when i restart my computer they come back. the whole thing has got me pretty frustrated and angry, i dont what i should do.