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I can now move icons on the desktop wherever I want now which I couldn't before.... The programs would all align as far left no matter what before.
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That's just a normal option. The factory setting probably just has it set to free move as default. I forget where you access it, but you have bigger problems anyways.
You answered your own question, it's a very malicious program that got downloaded onto your PC. Until you remove it or disable it you'll never have that up and running well. Your anti virus catching all those problems is a really bad sign imo. I'm certainly no expert on the subject but it seems plainly obvious that you are infected and it's designed to survive and get worse. I suggest bringing it to a professional and letting them deal with it. Either that or just get a new PC and junk that one.
Btw did you try Firefox? I noticed you didn't mention it. I doubt it'll help considering how screwed you are but it's worth a try.