It looks to me more like corrupted hard drive than a virus. Boot from floppy, run scandisk with surface scan, reinstall Windows over old copy, do the hokey pokey and turn yourself about. That's what it's all about.
Oh, and if someone manages to write a virus that can successfully infect a bios without you knowing, may God have mercy on us all.
Most likely, re-occuring virii (even after install) are caused by boot sector virii. Many clean OS installs won't drastically change the main boot sector, if at all, if they can help it.
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