Funny I see this because I actually had a run in wit this crap. Combofix FTW :D
I have to agree with
@
japsander
. MBAM isn't what it used to be. I would scan with that on the babylon infected machine and it kept coming up clean. Avast was going nuts though. So I decided to run combofix with a combofix script I made up real fast and problem solved.
Many other scans said it fixed the problem, but upon restart it was back. It doesn't just hijack your browser and default search engine either. The machine I was working on also had files deleting themselves. I saw no other issue other than babylon, and once I got rid of it, the file deletion problem stopped.