OK, The first issue is a spyware is issue as you suggested. MS Anti-spyware is getting rid, but I suspect due to System restore function of Windows it returns on next boot up. To get rid for good you need to switch off system restore, run MS Antispyware, then restart your PC and then switch system retsore back on. All restore points will be lost though, but that cannot be helped. To switch off system restore Select START > CONTROL PANEL > PERFORMANCE AND MAINTENANCE > SYSTEM, Then click the sytem restore tab and check the switch off sytem retsore box. Make sure you switch it back on after re-booting.
The second issue sound like a corrupt or missing dll file related to your NVIDIA graphics card. I am not sure how to fix this one, but I am sure someone on here may be able to. It may just be a matter of running scandisk or downloading most recent drivers for the graphics card, but wait for another response.