Definitely looks like a rootkit and/or virus.
The biggest problem is the tools for removale don't seem to work as well in Windows Vista and 7 as they do in XP. Cleaning 7 can be a major B.....
Keep in mind, most all of these clean up utilities, only work at their fullest (or at all) while the infected system is running. Running scans outside of the system will only get you but so far.
First Unplug your secondary drive and working on the main system drive first.
While you have the drive plugged into another system copy the following exe's
Combo Fix (Get ONLY from BleepingComputer.com Google combofix, rename the EXE from combofix to something else, like a.exe.).
Boot into safe mode, from the taskmanager applications tab, run the combofix exe you copied over. so say c:\a.exe
Let this run, there will be 50 stages, it can take a while, if it wants to reboot, let it, no need to get back into safe mode once it starts, boot normally, it should restart scanning.
Get me the log it spits out, and the log for HijackThis.