yes for sure it is a virus.They have made some changes in ur windows registery.I will suggest you following things:
1)Do a full scan pf your computer using a good updated antivirus.
2)second step you need to do is full scan of your system with any two good updated antispyware.
But the best thing to do is do a online scan.You can find many online scan options here.
Online scan options
3)Than you need to fix registry that was modified my virus.Use following tools to fix registry.
Generic Host For Win32
Fix Generic Host For Win32 Free Scan. Takes 3 Mins.
www.RegistryFix.com
Generic Host Error Repair
Detect & Fix Generic Host Error 100% Free Generic Host Scan
www.WebLogicBiz.com
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www.PcOnPoint.com