Circuit city and my best frineds computer...

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So, December of last year, my best friend bought a computer from... that's right, you guessed it, circuit city... after the purchase, they said they were going to hold it for them for 24 hours and put "anti virus" software on it. They go back the next day and get it. Circuit city went out of business a few weeks after they bought it because of the recession. So, anyway, I get called up there, cause i am the most computer literate person in the neighborhood, and i do small repairs and such for them for free, because hes my best friend. Well, he tells me he got kicked off of the internet, and i was like what the? So i sat down, looked at it, and tried putting AVG on it. The AVG installer told me that there was another program that would interfere and needed uninstalled, Winferno. I uninstalled it, because it obviously wasn't doing its job. SO, i get AVG on to the computer, run it the first time, and it comes back with 300+ infected files. They had only had the computer about two months... WOW! so, i got rid of those infections, or so i thought... anyway, a day or two later, he called and said that the viruses were back. so, i get my CD with all my anti virus and diagnostic software, and take it up there. Trend Micro-Hijack This, MalwareBytes Anti Malware, AVG, Spybot S&D, and a ton of other anti-virus installers. ran them, and cleaned it. It was fine up until recently. So, i go to see what was up when he called me the other day. he told em he clicked on an icon on his desktop that had been there since he first booted the computer, and it shut ran a command line prompt and then basically BSOD'd him... I asked him what the file was, and he said "shredder" so i did some research on it, from my own computer, not finding out much of anything except that it came with Winferno, and that winferno was malware itself. That solved the problem of HOW it got there... So, i boot his computer up, and to my surprise, it came on. I ran all the anti virus and anti malware programs i had ran before, but this time, i had more than a thousand in AVG alone... there were quiet a few, and a majority of them were in main memory processes, such as explorer.exe, and dwm.exe, winlogon.exe. the ones you cant end without causing major instability, or crashing the system. So, now, here i am, stuck, not knowing what to do, when suddenly, it hit me... call lenovo (the manufacturer of the computer) and tell them whats going on.. i went to my computer, got their number, and called. well, they said that they would help me restore that computer back to factory default settings. So, i backed up there important data, and started the process... it got done. and as of yet, i haven't heard anything,BUT, ill keep you informed... my point from all this is actually a question. Did Lenovo put winferno on that computer, OR did Circuit City, and IF circuit city did it, can my my friend be somehow reinbursed if this dosen't fix the problem. Discuss this with any comments or anything that might help me help them.