Sgt.MADHat

well hello guys, I have come here bearing a problem with a hacker that I encountered, I will try to give as many details as possible.

It began when I was chatting on xfire, I have a large xfire friend base so a seemingyl random xfire isint that unusual. He posed as an old clan member and we chatted until I hit ok to a file transfer over he xfire program, I cant remember exactly but it was disguised as a video or some sort.

Later I found out he was tracking what I was saying, similar to a keylogger he knew what I was typing to my friend on xfire, and on youtube. I knew something was strange, then i got even weirder, I was on he phone and he knew I was talking to a friend. I personaly believed he somehow accesed and could hear through my microphone that I use for gaming, which was on my desk. Was very very strange.

After that I continued to believe that it was a keylogger till he started sending me mesages through my own notepad, very weird, and ultimately seemed to have control over icons on my desktop etc.

Currently I am running a virus scan and I unplugged my internet.
Im writing from a friend old computer.

What can I do to fix/or find this problem, and what exactly is it.

Also to help when I logged on to do a restart I got a few errors reguarding something about a demo obsidium, also an error that looks like this "c:/WINDOWS/system32.drwatson32.exe.

I looked by using ctr+alt+Delete and under processes I found a similair name by run32dl.exe

any help is appreciated guys, Im sing Norton Anti Virus at the moment.

-Help Appreciated-
-Thankyou