Don't panic and don't reformat.
As Fio advised, do a scan in Safe Mode, and delete any copies of malware found. Furthermore, use Process Explorer to find out more information about running processes (it even has a handy "Google" option for process names). For example google on "dllhost32" reveals that it is an unwanted process and gives clues for its functionality (some search results tell me that "[this malware] is started automatically from a Run, RunOnce, RunServices, or RunServicesOnce entry in the registry"). Use Autoruns to weed out any autorun keys, including loading drivers.