I first want to thank all who contributed to the thread. I very much appreciate the attempts at helping with this problem.
My computer finally went unusable friday night, its now Monday late afternoon, and I had to just shut it down. After pondering the situation for a couple of days I decided the only thing I could do was 'bite the bullet' and format my C drive.
This drive is a partition drive - 1 drive partitioned to make 2 drives - and I was able to save the info on the other drive (my 'D' drive). I, of course did lose some data and still haven't got my email up and working yet - but my computer is running again and doing well.
When this was first discovered I researched as much as I could about "Win32:agent" trojans and 'decompression/time bombs' to try and figure out how to deal with this. I am not a computer expert by any means. While the Win32:agent appears to be quite well known - the 'decompression bomb/time bomb' malware seems to be little understood beyond how it actually functions - which is quite well explained. A lot of 'experts' seem to think that this problem isn't all that serious and make more of a technical discussion out of how to build one/what it is rather than how to deal with it when it activates.
I was never able to find anything of this nature. I still don't know what to do if one activates - but it is an insidious thing to watch your drive space being slowly devoured and not being able to do a darn thing about it.
I hope this helps someone else, and again, I sincerely thank the folks who gave a hand in trying to help.
As I am a fan of AVAST I'll be lurking on the forums for the next bit of knowledge I find of use.
All the best,
TainanDC