Yeah, it definitely is the w32/Pate.b virus. It's #3 on McAfee's top 10 current worst virii active. What I did, was delete the windows/temp subdirectory..it hides in .tmp files there.
Then I un-installed the infected files I could no get cleaned by McAfee's virus scan and re-installed.
GOOD NEWS..just did a complete scan and NO SIGN of it!
I think what was throwing me off before was that it hid in the windows/temp directory and kept re-infecting after I cleaned everything.