Follow-up:

Restarting didn't fix it. 3 seconds, over and over.

I let this virus install itself originally, I though Kaspersky was overrreacting, it immediately found it when I connected the ChiPod. A counterpart to the exe was an autorin.inf on the ChiPod which activated the virus install as soon as the drive was properly mounted to my PC.

The virus installed a .exe called wincfg.exe into windows\system32. It made Notepad open a file with some Chinese characters (boxes to me) open at bootup, and nothing else as far as I can tell. wincfg.exe ran all the time the PC was on, but didn't appear to do anything. Quite a few viruses call themselves wincfg.exe.

The player I've got is this one:
http://stores.ebay.com/Happy-Digital...QQftidZ2QQtZkm
Which I got a month or so ago.

If update8888's got viruses in his network his customers won't be posting nice feedback about him.