How to get rid of this?

There's this thing on the bottom right of my screen (windows xp) and I'm pretty sure it's not supposed to be there. It's a little pop-up bubble (like the windows update) and it says ''(warning sign) (bold) System Alert! (end bold) System has detected a number of active spyware applications that my impact the performance of your computer. Click the icon to get rid of unwanted spyware by downloading an up-to-date antispyware solution.''

I tried Spybot: Search and Destroy, but it didn't pick it up. Neither did the antivirus software. Any other ideas? free antispyware downloads?

Thanks in advance

~Shorty~

How to get rid of this?live update

Is that advertising trying to sell you, one (or more) of these useless products? If it is one of these, then it is likely an infection called Smitfraud that is causing the phony warnings. It is scam advertising trying to swindle you. And a link to a free removal tool is down at the bottom.

AdwarePunisher,

AdwareSheriff,

AlphaCleaner,

Antispyware Soldier,

AntiVermeans,

AntiVermins,

AntiVerminser,

AntivirusGolden,

AVGold,

BraveSentry,

MalwareWipe,

MalwareWiped,

MalwaresWipeds,

MalwareWipePro,

MalwareWiper,

PestCapture,

PestTrap,

PSGuard,

quicknavigate.com,