Spyware.BCWinSpy is it really dangerous?

Hi I just reformatted my hard drive for an HP with restore disks, then installed Norton 2009 and it found this the next day! Norton says it does things like key logging.

 

Does anyone know how it could have got to my computer? I have an extra hard drive - is it possible a virus on that drive (which is older and used to have the operating system - XP) transferred across?