[!Yaminashi]

I'm sorry in advance if this gets a tad confusing but I'll try my best to explain what's going on.

A few days ago my Microsoft security essentials started giving me little popups about detecting possible threats, so I'd hit "clean computer" and a few seconds later I'd get another popup saying that the computer was cleaned.

However after this happened my internet would suddenly die on me, and I'd get a message saying something like "the proxy server is refusing connections"

So I'd do a full scan and something very similar to this would be found, quarantined and removed:

"Backdoor: Win32/Cycbot.B"

This went on for a few days so I'm assuming it was never really "cleaned" from my computer.

Fast forward to yesterday and my internet doesnt work at all.

Is a re-install of windows 7 my only savior?