Viri - Trojans -Worms

A computer virus is a computer program that can copy itself and infect a computer without permission or knowledge of the user. A virus can only spread from one computer to another when its host is taken to the uninfected computer, for instance by a user sending it over a network or carrying it on a removable medium such as a CD, DVD, or USB drive. Additionally, viruses can spread to other computers by infecting files on a network file system or a file system that is accessed by another computer.

Broadcast
attacks are a
thing of the past,  targeted attacks are here.
A Trojan horse is a program that unlike a virus contains or installs a malicious program (sometimes called the payload or 'trojan'). The term is derived from the classical myth of the Trojan Horse. Trojan horses may appear to be useful or interesting programs (or at the very least harmless) to an unsuspecting user, but are actually harmful when executed.

A computer worm is a self-replicating computer program. It uses a network to send copies of itself to other nodes (computer terminals on the network) and it may do so without any user intervention. Unlike a virus, it does not need to attach itself to an existing program. Worms always harm the network (if only by consuming bandwidth), whereas viruses always infect or corrupt files on a targeted computer.

What can be done?
Running an up to date OS, anti-virus with the latest definitions along with a firewall is the first line of defense. User education and good computer usage is the second line of defense.

What about removal?
Removing these nasties from an already infected, compromised system should be left to professionals. You can't realize the extent of the damage with the current off the shelf consumer products. The correct tools, skill and knowledge are nessacary to successfully recover a compromised system and mitigate any damage that's already been done.