Most definately
YES! A backdoor RAT (Remote Access Trojan).
BFGhost 1.0
Disable System Restore: -
Microsoft Knowledge Base Article - 310405
How to turn on and turn off System Restore in Windows XP
Perform an online virus scan: -
Panda ActiveScan
Download, immediately update, and run these free tools: -
Spybot-S&D 1.3
Spybot - Search & Destroy 1.3 Tutorial
Ad-Aware SE Personal Edition
Ad-Aware SE Personal Edition Tutorial
CWShredder 1.59.1
To protect against possible reinfection, download and use these: -
SpywareBlaster 3.2
SpywareGuard 2.2
Re-enable System Restore if you wish to.
Good luck.....................
