I won't recommend reinstalling Windows, because somebody has already told you to do that, so I'll provide alternatives.
how can i remove a virus that prevents downloads
Simple. Download the program on another computer and transfer the installation file over to the infected computer.
One problem. Some installation files need to download additional data to actually install, however some programs don't, and some are compiled into the one .exe file.
Try this: http://www.microsoft.com/security/scanner/en-au/default.aspx
This is a single .exe file which I have found to be reliable in picking up viruses in the past. Running a computer in safe mode before performing scans does increase the chances of success. Safe mode can also minimise the effect the virus has on the computer, allowing you to perform functions on your computer that the virus would disable otherwise.
Also, it may be worth installing a program from a working computer onto a USB. Perhaps the infected computer will beable to run the program off the USB. I doubt that will work however, but maybe somebody else with the knowledge can shed some light on the matter, Its worth a try though. Look into Avast! or AVG like mentioned above. If you use Avast! perform a "Boot Time Scan". Better detection rates in that mode.
Avast!: http://www.avast.com/en-au/index
Extra information. Viruses have been known to download more viruses to your computer and upload junk to the internet. Disconnecting your computer from the internet and network would be a very wise move to prevent further infection. Any USB's you plug into your computer should be carefully monitored before plugging into other computers.