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Computer virus - it will not be removed, help

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I have a virus/trojan/keylogger/whatever on my computer. it is giving me very limited internet access. when I use google, the page takes at least 5 minutes to load (I suspect that the page is being scanned for means to remove the virus by the virus itself - as paranoid as that sounds I'm fairly sure I'm right). when google does load and I want to go to that page, it will open up a new tab and from there go to ssome completely random website.

Through research (5 long continuous hours of it...sigh...) I have discovered that the spyware on my computer (coincidentally named spyware.ispynow) is a keylogger. this is both good and bad. I have identified the problem, being the good news, but the bad news is apparently they are ridiculously stupid hard to get rid of.

Basically, this is what's happening: Every 15 minutes I get a windows security center alert (the alert contains no grammatical or spelling errors, and looks exactly like a normal, real windows alert would) telling me I have spyware.ispynow on my computer. it tells me what it is and what it does, and tells me that if I want to remove it, I should "enable protection". there are three selectable options...however, 2 of them are grayed out and not selectable...keep blocking (not selectable) unblock (not selectable) and enable protection (selectable).

When you click enable protection, it takes you to some fake anti-virus/spyware crap called "perfect defender 2009", saying if I want to remove the virus I need to buy it.

Also, whenever I open any browser (mozilla or ie) it warns me, again, that the virus is still there and I can either click the option to ignore it or go back to the website with perfect defender 2009 to buy it.

I have tried downloading avast! Anti-virus. I have ran a 3 hour scan and removed eight things, none of which were the keylogger..

Malewarebyte's anti-malware will not load. I thought maybe the virus recognized the name and blocked it, so I changed the file and application name, and nothing happened.

I can't visit any website that deals with virus removal minus a few here and there...the way to get around the google thing is if I hit "cached", which highlights the words, somehow it gets around the problem..I don't know how. maybe because by hitting cached I'm still technically on google or something?

I really don't know what I can do besides remove everything on my computer and starting fresh, which is starting to be a very good possibility. I have a lot of files/folders/personal things on my computer, however, that I don't want to lose.

Does anyone know of any way I can get this dealt with? money is, however, an issue, as I am on an extremely tight budget.

My life revolves around my computer, ranging anywhere from school purposes to email to keeping in touch with friends via aim, all of which are passworded.

I need drastic help - does anyone know how I can get rid of this?