Malicious Virus Infection Render Boot to Safe Mode Failure

My Dell Studio 1435 is infected with a deadly virus, possibly a worm if that means anything to the experts. Basically, the virus is on a "lookout"for any USBs connected to the machine and will completely eradicate the USB contents. I cannot boot to Safe Mode either and have tried System Restore and Repair, but to no avail. My CD-ROM is not working either, it makes a dreadful sound every time I insert a disc and then it will spit the disc out.

I don't mind a clean installation of the OS, it's what I intend to do anyway, but I need to backup my files and drivers, but I don't think it's a good idea to do any backup with the virus present. Does anyone have any idea how I can go about removing the virus?