Thank you again for all the help. I may have made a serious mistake though, I was trying to remove the infected files mentioned in the the blogs and discussions
I give up. What part of "Do not undertake this without guidance, as there is a good chance of locking yourself out of your account if you don't remove all the files in order" did you not understand?
Well, I don't know how I can help at all now unless you tell us exactly what you have removed so far. I am also not understanding what you mean by "no icons appear." Does that mean you can see your menu bar and desktop but nothing else? Can you bring spotlight up with Command-spacebar? I think we tried having a user come up in safe mode the other day, but that didn't help.
OK, here's something that seemed to work for a couple of users:
boot in single user mode by holding down the 's' key when you start your mac. (http://support.apple.com/kb/HT1492)
After a while, you get a terminal prompt and type:
mount -uw /
Your Mac would be ok after that, providing you're going to delete all the remaining virus files.
I'm headed off shift at this point, so if the above doesn't work and nobody else has any new ideas I'd head for the Apple Store.