My mate had similar problem to that on her home pc. She couldn't even open up "My Computer" without that message. And "Control Panel" did exactly the same. I followed Warez's instructions in Spyware removal and it seems to have done the trick. When SpyCatcher ran it picked up a program called "MSNCHATHOOK" can't remember if it was a dll or an exe but once this was quarantined it stopped so I removed it. It was a little bit tricky cos I had to run all the install programs from the run command cos I couldn't get in to "My computer" to run em. PS she only had 39 processess running also which seemed ok to me - obviously not!
Hope this helps