If you have not yet installed OneCare on the laptop, then formatting the laptop and reinstalling everything using the procedure outlined and provided for by the laptop manufacturer would be the way to go.
You could also use a variety of the free online scanners to clean up threats found *before* installing OneCare and running it.
http://www.eset.com/onlinescan/
http://www.ewido.net/en/onlinescan/
http://onecare.live.com/site/en-us/default.htm
http://www.kaspersky.com/virusscanner
If you are using Windows Live OneCare and you have been infected, but OneCare did not detect or cannot remove the malware, please contact support to report this and for help with removal.
How to reach support (FAQ) - http://social.microsoft.com/Forums/en-US/onecareinstallandactivate/thread/30400b52-7f26-4ba0-bc18-17e305329d90
If you are in North America, you can call 866-727-2338 for help with virus and spyware infections. See http://www.microsoft.com/protect/support/default.mspx for details. For international information, see your local subsidiary Support site.
-steve
Microsoft MVP Windows Live / Windows Live OneCare Forum Moderator
