Wuaclclt.exe - Is it possible that this virus is infecting my BIOS or RAM?

doubleself

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My brother returned my laptop (Acer 4732z) yesterday with the system as messy as hell. My brother said that the windows restarts every 15 minutes. (It's windows Xp service pack 2)
Everytime I start windows it goes lag and lag. I checked, and in the task manager, there's this process "wuaclclt.exe" (not the usual windows update client wuaclt.exe) consuming quite of the memory, and there's this svchost.exe that keeps consuming memory way up and up until there's no more for the other program, and the system either hangs or restarts.
if i kill this svchost.exe the memory would be freed, but the process would return again and start over consuming memory.

usually if i had a problem with virus so far i would just format it, wiping clean the system drive (Drive C: in my case) and then reinstall windows XP and other thingies, and that's it, a fresh system.

but now, my problems are these:
1. I couldn't get the laptop to read te winxp installer cd. i've set the boot order to CD-drive at the top, but the winxp setup won't load and the current system load itself as if there's no winxp setup cd there. I've tried another winxp setup cd - a freshly burnt cd - but the problem remains the same. at first i thought that this was due to the optical drive problems, but then: problem no 2
2. I have a winxp setup USB flash drive, i usually use it to reinstall windows to my netbook which has no cd drive. usually there is no problem installing it, just plug in the usb drive and there would be 3 numbered options after booting, in which option number 1 is the first step to install it. but now after the booting the option number 1 is MISSING! and option 2 and 3 are still there...

my questions are
1. is the virus infecting my RAM or BIOS?
2. how can i format the C: drive?
3. do you have any idea what kind of virus is this?
 
Viruses cannot modify your BIOS, but they can remain in RAM. Unplug your laptop and remove the battery and leave it that way for a good hour and then try booting into Safe Mode and cleaning the Malware.
 
Viruses cannot modify your BIOS, but they can remain in RAM. Unplug your laptop and remove the battery and leave it that way for a good hour and then try booting into Safe Mode and cleaning the Malware.

What are you talking about, if you turn off a computer or restart it everything in the ram gets deleted, so I don't see what good turning it off for an hour would do.
 
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