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Sounds like Welchia Worm or Blaster worm. They are similar. In fact one is a variant of the other. Symantec (Norton Anti-Virus) has a worm removal tool that will inspect your computer and remove the worm. Microsoft now has one too. I have used the Symantec tool and it works well.

Once you remove the worm, you must bring your anti-virus protection current and you must update your windows XP operating system. That is easy to do. Just: (1) click on the START button, then (2) click on SETTINGS, and then (3) click on the CONTROL PANEL. On the left side of the screen you will see a link to update your WindowsXP OS. Click on the link and select all CRITICAL UPDATES for downloading and installation. The 'patches' will self install.

Good Luck!