problem with a virus "Police Cybercrime...etc etc" - anybody had this problem

Six hours ago my desktop locked up with a screen headed

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POLICE CYBERCRIME INVESTIGATION DEPARTMENT

it went on to say I was guilty of illegal file downloads, copyright violations, kiddie porn and terrorism offences.

It demanded $200 within 48 hours else criminal prosecution would be started against me.

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Apparently this is a known virus and my commercial version of AVG missed it. (Should have stuck with the freebies     LOL)

I am not worried about the supposed legal threats, but need to know how to remove the virus from my computer.

Google turns up a list of supposed helpers. Many appear to be bigger shysters than the virus.

There are sufficient references to this virus that information on how to to remove must be available.

GOOGLE gets a lot of hits, but most are bigger problems than the virus and thinly disguised extortions.

I don't want to do the wrong thing and make the situation worse.

Help!!!

BTW - ASUS Desktop running windows 7. 64bit. No problems until this.

Cannot get it to restore to a previous setting in safe mode.

Roy Sletcher