These people are making a lot of $. 5 million per year pushing this fake crap. I have a feeling it will get worse with the economy situation. Don't let your friends and family fall for this kind of stuff. I have "fixed" a lot of my friend's and family's computers with this kind of "problem"
If you perform regular (weekly) data/User file backups, and a 6-month Image of the PC, and run a top rated antivirus/antimalware program, Its not a problem-simply re-install and In two hours time you are back were you where a week earlier even if the malware gets a foothold.
In order to use the program you should follow these steps:
Run Anti FileFix
When the program opens, click on the Select Folder button and then select the folder you would like to scan. If you wish to scan an entire drive, then select the particular drive letter. When the drive is selected, press the OK button.
At this point you can click on the Scan button in order for the program to scan your computer for encrypted files. This mode does not decrypt these files. On the other hand, if you wish to find and decrypt any files that Anti FileFix finds, then you should click on the Scan and Fix button.
When the files are decrypted, they will be decrypted into a new filename in the same folder with _fixed(1) appended to the original filename. So if the file was named test.doc, the decrypted version will be test_fixed(1).doc.