FIXED! FIXED!
OK, worked my way through this so just in case it happens to you heres what I did.
The virus basically changed all my local folders in my user account to hidden read only!!
First I customised the desktop and start menu by right clicking on the desktop and using the 'customise' option. If oyu work your way through all the options (there are some on the right too!) you can add back in all the icons and options you used to have on the start menu.
Second I changed my folder options. From 'folders' in control panel via the 'view tab' check view hidden files and folders, then uncheck known file types and protected operating system files. They are all in the same palce and easy to find. (Remember to go back and retun them to the old settings once you've finished)
My old desktop files appeared immediately. You need to right click on the file and in the general tab uncheck 'hidden' and 'read only'. If you are asked to apply to all the subfolders and files when you do this the answer is YES. This means that when you change your folder setting back to where they were the files stay unhidden.
Now go to the start menu and select the user accont that had problems (Probably it's your own name?). Work your way through each of the folders doing the same thing, cdarefully unchecking read only and hidden for YOUR OWN 'MISSING' FILES. Do not recklessly uncheck every file...some are supposed to be hidden to protect your system from changes. Remember that if you have files of the same time you can select them all at once and group edit them so again selct them carefully.
Internet Explorer files are in your 'favourites' folder. They are also in the documents folder under bookmark.html but I suggest you restore them to visible from the favourites folder.
Now go back and change your folder options to what they were...you have been told.
(I'm sure you could do all of the above a better way but it worked and I'm happy)
Cheers for the posted suggestion, was much appreciated and would have tried had I not got it sorted!!!!!
PS you have no option but to restore all your quicklaunch toolbar one at a time. Just open start, all files then right click on the application you want to add. You'll see an 'add to quicklaunch' option...hey presto.
If you lost your 'show desktop' and 'cascade' (or switch between it's called) quick launch icons open 'computer' and paste this into the launch bar... C:\Users\Default\AppData\Roaming\Microsoft\Internet Explorer\Quick Launch. Hit the blue arrowThen 'copy' both icons at that location and 'paste' to the desktop or the quicklaunch.
Top tip...never, never, never, let you antivirus expire. Four hours wasted and a lot of heartache for a few quid. Aint worth the stress.