Thank you for all the info good people.
I think I am going to go with a format C: and reinstall just to be on the safe side.
Goodness knows what could have been done by me running a malicious .exe on my machine.
Serious stupidity on my part but very cleverly implemented by the hackers, they really tricked me good but have to say, I'm astounded Electrum left themselves open to this type of vulnerability. I mean the hackers actually manage to block initial outgoing transactions in order to fool you into thinking you need an update.
Bastards.