There's definitely something malicious running on that computer, you'll want to boot into safe mode to try and get your usability back. But if you're looking to just reinstall windows, I think that would be easiest for you. Try Mozy Backup, that works pretty well, it provides 2 gb free space, and lets you download each file you've backed up individually.
If you want to make another attempt at restoring your usability, boot up in safe mode. To do this, restart, when its starting to boot up it will give a list, press f8 for safe mode, F9 for bios, f12 for hard disk priority etc, its different for a lot of motherboards, but chances are you either have to press F8 while booting up, or hold down F8 while booting up.
When safe mode is started, run MSconfig again, Click on diagnostic startup, then click on selective startup (this only enables all the essential requirements)
Then select all items underneath selective startup
Go to Services and enable only the following services (dont disable any, all the unessential ones to run successfully should already be enabled)
http://tinyurl.com/ksohag
If some services are missing that is okay
When complete-
Go to startup and enable only noted startup services in the text pad I provided, if they are missing, keep an eye out for only the essentials on startup (your sound drivers, nvidia or ATI control panels, firewall)
Now I also recommend installing and running SpybotS&D
http://www.safer-networking.org/en/o...rs1/index.html
And, instead of McAfee, I recommend Comodo Firewall,
http://personalfirewall.comodo.com/d..._firewall.html
And Ccleaner
http://www.filehippo.com/download_ccleaner/
Scan with those utilities in safe mode, install/download them in normal mode though.
When installing comodo it asks if you want to install Ask.com toolber etc, please, uncheck that, lol, not like you'll use it, no reason to clutter up your browser.
I would re-install mcafee if you really actually want it to run well again.
And if you're not already, use Google Chrome browser, its far safer and superior to IE, and Firefox