Help with computer virus?

my other computer got a virus, my dad was on myspace and his dumb *** tried to click on a video and dit downloaded something to our computer, well we ran a virus scan and it said we have a trojan horse virus. so we tried to fix them with norton and then it said someone was getting in through our connection. So we unpluged the computer and modem and everything for about an hour, when we plugged it back in, the backround was changed to all red and it says " your privacy is in danger, get virus protection. there was all theese new icons on our desktop, so we tried to drag them all to the trash to deleat them, but as soon as we clicked on the desktop, a "anti virus healer" website came up, and it looked like it was scanning the computer, but my aunt said its just a website and as soon as you click "fix my computer" it will crash everything, we cant get into internet explorer, and anywhere you click besides the start button, takes us to that website. it wont let us restore original settings