Spyware, viruses, & security forum: Iolo Scam

Iolo Software Scam?
Iolo System Mechanic Professional Useless Against Trojans despite Claims.

A few months ago I bought the above Iolo software that performs the dual function of protecting against viruses, Trojans and other malware, as well as provides tune-ups for computers. The software box stated:

Blocks viruses, Trojans, rootkits, worms and more. Disinfects dangerous email attachments Removes backdoor programs, key loggers and more.

However, two weeks after installing both this software and the associated firewall, my laptop became infected with a Trojan called windows32 Trojan fake spy pro. Many programs would not boot, and a balloon came up saying it was infected, and urged me to activate my virus software. I was unable to get onto the Internet at all except for the website of this malware program, Antivir Solution, Inc.

I ran a complete computer scan of my computer for viruses and malware using my Irolo program. I ran it twice. It could not locate an infection. However, I could no longer contact the Irolo website for updates.

I called Irolo technical support to help me remove the supposed Trojan, and was connected to an Indian technician. He told me amazing things and led up to what appears might be a scam.

He told me that Irolo software does not protect against some Trojans and that millions of computers all over the world have been so infected, and no software can protect against it. I advised him that their ads say their System Guard and System Shield state they protect against Trojans and other malware. He just repeated that no commercial software protects against these Trojans.

He also asked me what sites I frequently used, and I mentioned I was a blogger and also used facebook. He immediately jumped and said I was infected from using the facebook site. He said they are a focal point for infection, and if I did a google search, I would find that to be true. How he knew this sight unseen, shows a remarkable clairvoyance.

He then stated my only recourse was to take my computer to a Microsoft Certified Technician for repair, because my computer has been take over by a very aggressive malware that is slowly taking over every aspect of its operation, slowing it down and destroying its functioning. It was urgent to get it to such a technician immediately, otherwise eventually I will need to get a hard disk replacement that will cost $380.

I have no idea where that dollar amount came from, but I doubt that a hard disk replacement would cost that much, especially as my laptop was still under warranty.

He stated I could take the laptop to Best Buy, where their Geek Squad could fix the machine for $299. Or, I could take it to Radio Shack, where they would fix it for $249.
But then he had an idea. Or, I can put you in contact with a Certified technician that works with us, who will fix it for $199.00. He said that in addition, if this ever happens again, their own technicians will fix it again for free. He stated, however, that if I went to Best Buy or Radio Shack, and the machine became infected again, I would have to pay their full price to get it repaired again.

I turned his offer down smelling a scam by Iolo, who couldnt protect my computer from a ubiquitous Trojan that just sailed through their firewall and virus protection software, and decided to make an extra $199.00 by essentially selling a second, higher tier of protection.

Or, the Indians are pulling a fast one on Iolo, shuffling people to their neighbors for a cut.