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Need help getting rid of a virus!

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I have run into this kind of virus a lot over the past few months. Your files are actually hidden. Showing hidden files and folders should reveal them.

You not only have malware but have a rootkit. Sounds like you did a software system restore instead of a format and reinstall of XP.

What I would do is run Tdss and then combofix. This will terminate the rootkit. Then (Too late now most likely) Run a system restore and restore your computer to an earlier date. This guide covers rootkit removal and should work for you Has the links to the tools I talked about. All are free