Win32/Nuqel.E and BankerFox.A

I just started getting this errors saying everything is infected. It seems like firefox is the only browser I can use (an IE porno ad keeps popping up every once in a while) but I was wondering...since this won't let me open anything..I even tried to download the free AVG virus scanner but it said that .exe was infected so my question is would it just be easier to take my recovery discs I made for my laptop (Windows 7) and just start from factory settings again. I don't have any important pics or programs on this laptop as it is fairly new so I would not have a problem wiping it clean. Thanks in advance for any help you can provide me with.

Download OTL by OldTimer to your Desktop.

• Close all windows and double click OTL.exe
  
• Click Run Scan and let the program run uninterrupted
  
• It will produce two logs for you, one will pop up - OTL.txt, the other will be saved on your Desktop - Extras.txt. Post both logs in this thread.
  
• You may need to use two posts to get it all.