The Windows update merely disables the virus.. and patches the hole in XP causing it, however it does NOT delete it. (no harm done with it there.. but deleting it is much safer than letting it hang around)
to DELETE the virus .exe file, download this program:
http://download.nai.com/products/mcafee-avert/stinger.exe
or, if you are paranoid (lol.. alot of forums im trying to give this to arent clicking the link)click the below link for more information about the Stinger virus removal tool (only kills this virus, and a few others...)
http://vil.nai.com/vil/stinger/
i had this virus also, but stupid me.. instead of waiting to hear news about it (which is near impossible.. its such a pain to be rebooted within 60 seconds of startup) i brought it to Bestbuy.. and paid 30 dollars for nothing, which ill be getting back tomorrow afternoon.. they charged me for a 'System Tune-Up' which was 30 dollars.. but for that much money i could buy something more useful, like the full windowblinds set for a little more.. but anyway, after i got it home, i tried it again, and it was still rebooting me.. then i discovered msblast.exe in my win32 folder, deleted it, deleted it from my bin, and viola..
if you dont have this virus, you WILL get it, nearly guarenteed.. so patch up, and save yourself the hassel of money-hungy tech support employees. >
im not sure if theres an image code on this site, but in case your unsure if this is your case, look at this screen shot:
http://www.mtmc4fun.com/temp/Image1.jpg
again.. download the patch, fix the restarting problem, then download the program to delete the virus completely, you shouldnt trust the shredding files from the recycling bin feature.
edit: sorry if there was already removal tool links in this topic, im just making sure.. all in one bundle, lol