"Antivirus Action" infection

My friend's computer is infected with the "Antivirus Action" program that is actually malware that hooks on any program that the user starts and reports the file is infected when it's not infected, preventing the started program from starting.  On the web there's a lot of information on ways to fix this, but after reading through some of the most pertinent solutions, nothing panned out because some registry keys itemized by manual removal procedures weren't found or were not applicable.  This leads me to believe that perhaps this is a new strain of malware that has no known effective solution, and I have yet to find software that can be run off of a CD in safe mode to effectively remove it.  The friend's OS is Win XP SP3, mine is Vista x64 Ultimate.  I have NIS on one PC, version 18.1.0.37.

 

So, any solutions?  Thanks.