Spyware Remover 2009. About a 100 infeceted in "Temp" folder

When I scanned it I removed Spyware Remover 2009 by doing the "Fix Checked" and I removed a program named Zango along with about 20 of the randomly named .exe's.
I run MBAM but it freezes in the middle of scans it detects over a 100 infected files.
Here is the log file, its too big to put in this post http://www.fileden.com/files/2007/1/29/709321/hjt.txt

How have you managed to get that infected? I would recommend a format rather than fixing this.

a) There is so much malware I'm willing to bet Virut is there too.
b) The malware has probably caused so much damage, if I try to remove this I could just end up trashing the machine

To help you understand more, please take some time to read the following articles:

When should I do a reformat and reinstallation of my OS
Where to backup your files
How to backup your files in Windows XP
Restoring your backups

Its not my computer so I don't even know how everything happened. Also the computer has the built in Vaio (Sony) recovery wizard, should I just run that?

Unless that option has factory restore then I doubt it will help.