mudcat.org had detected spyware on my computer?? That doesn't doesn't sound like usual behavior for that sort of thing, but I guess it's possible. I'll alert Jeff and Max, and see if they can come up with an answer. I would think it's something you picked up somewhere else that may be spoofing that it comes from Mudcat, but you never know. Spyware has become very obnoxious lately.
Thanks for letting us know.
-Joe Offer-

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Here's a typical complaint about the same problem - but note that the popup usually says Windows has detected spyware. Looks like the culprit might be XoftSpy, but that's puzzling. Ziff-Davis, PC World, download.com and other reputable download sites, all offer XoftSpy for download.

I have tried to remove some type of spyware or adware on my computer that keeps popping up even with I am not browsing the internet. It says something like "Windows Error :Windows has detected spyware on your computer Please download free spyware" Open or Cancel. I have run Adaware updated and Spybot Search and Destroy updated with no luck. Also I have done a virus scan updated with Symantec Antivirus Corporate Edition with no luck. So I have included my Hijackthis log for your reference. Maybe someone can figure this out.
P.S. If I click Open on the popup it takes me to a website to purchase XoftSpy Spyware software.

Source: http://www.computing.net/windowsxp/wwwboard/forum/108188.html

I'd suggest a freeware program called Spybot Search and Destroy. Some adware programs masquerade as spyware removers, so you have to be careful what you download and where you get it. Spybot S&D is almost universally recommended.