Try to download and install
Firefox or
Opera as webbrowser to download the other programs. This will probably prevent the popups while you are browsing, because the virus, spyware program is only (hopefully) focussed on Internet explorer. If you still use Internet Explorer 6.0 (very old program: IE SP1 is from 12-9-2002), you better use Firefox or Opera in the future, unless you want to be infected soon again in the future

.
http://www.firefox.com http://www.opera.com/
Do you have installed some extra tool bars in Internet explorer? Remove them.
Look at the section Anitspyware tools and antivirus tools of
http://www.ubcd4win.com/contents.htm.
You can install them inside windows, no need to make the ubcd4win cd.
You can boot into save mode (press F8 at boot). This prevents automatic starting of some programs and from the spyware program, so all traces should get removed.
Try also
Index.dat Suite (see the link above).
Quote:
A unique program that allows you not only to delete the index.dat files, temporary internet files, temp files, cookies and history, but it also allows you to view the index.dat files on your system.