You have been infected with the WinFixer virus.
Very hard to almost impossible to completely clean your system.
It all depends on what other malware it has already installed.
Best to disconnect that computer from the internet to prevent further infection.
This infection is polymorphic. It installs several files that display the red X and changes your wallpaper. It also has a file that downloads more viruses into your system.
It will also attempt to get you to send money to buy Windows Antivirus 2009.
Do not 'buy' it!
They will take your money and not sell you anything other then a bogus scanner that says it is clean.
Being polymorphic means that if you do not get rid of every file associated with it, it will rebuild itself.
You can attempt to remove it by first turning off system restore.
This needs to be done otherwise when you reboot with system restore turned on the system will reinstall it.
Now follow the directions found here;
Remove Winfixer
Good luck!