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I could not run any programs such as Windows Explorer. The Win 7 Internet Security 2012 app would come up instead. This thing was throwing out all kinds of buzzwords. It said my computer got hacked. It also said I was a victim of identity theft. How did this thing get installed without me running a program?
I went on another computer and did some research. Apparently this malware intercepts browsers and any executables. There was a full set of instructions on how to remove this evil malware over at Bleeping Computer.
The manual removal instructions seem to have done the trick. Right now I am running a full virus scan with Malware Bytes Anti-Malware. A quick scan already found some probs with my laptop.