If have now done a scan on my main system and it has also found the same virus.
However after removing the infected files from safe mode I can still open a .TXT file with notepad by default.
I have also done a search for notepad on both PC's, one found 17 files and the other only 9,this leads me to think my laptop is compromised.
Time maybe for the sledgehammer approach of a complete Format and reinstall,I agree with Sociable sometimes it might be the fastest solution to the problem?
I also found this
http://www.theregister.co.uk/content/56/35174.html
Regards