40KB File Folder Explorer Problem - USB (Trojan/Virus)

The problem that I have on my machine is I am not able to delete any file from my system. Whenever I delete any file another file of the same name gets created. Also all the folders on my system are doubled. The actual folders are hidden and the new ones that are created are all of 40 Kb.

I changed the Registry key - Windows/Explorer/Advanced/Hide to 1(as suggested by some forum), where I can see the hide folders now. But again when I restart the machine, only the unwanted folders of 40KB are seen. When I try to delete, it keep on creating.

I have a Recycler.exe (having an icon like a folder) in each drive that I have, and, that is causing all the problems (seems like).

Whenever I try to delete this Recycler folder it copies itself back. Also there is a autorun.ini and few other files, which if I try to delete are copied back.

If anyone faced the same problem or found any solution, plz let me know.