OK managed to discover what it is...
Any suggestions how I remove it?
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It should be removable but according to the McAfee page describing it it may be necessary to temporarily disable System Restore and reboot in order to clean it thoroughly.
That would apply to any version of Windows above Windows Me.
See: http://vil.nai.com/vil/content/v_423293.htm it mentions Windows Me/XP only but the removal instructions also apply to Vista and Windows 7.
Thank you so much. I've tried that and so far no appearance of the virus, but sadly before I did that it managed to use my machine to send out loads of spam emails!
I'll keep an eye on things over the next couple of days and run regular scans.
Uh oh, well hopefully it's cured. Good luck.