My brother had a similar one a couple of months ago
Step 1) Getting Internet Connection back
1) Open your browser (IE in your case)
2) Open internet options (tools > internet option) and go to the connections tab.
3) Click the LAN settings button and disable the proxy option.
The virus has established a proxy that will only allow you to connect to it's website which is why the others will not load. There may also be a chance the virus is masking the pages with javascript which can be disabled in options as well.
Step 2) Removing the problem
1) Delete ALL executable files you have downloaded.
2) Get Process Explorer (See link in sources) and run it.
3) Figure out which process is the virus (google each process)
4) It will tell you where the process is running from (won't be the original file), write the files location down.
5) Kill the process
6) Start --> Run --> type "regedit"
7) Ctrl+F and search for "runonce" with the search set to keys
8) Just above RunOnce should be Run click on it, this will list all things that run when your computer starts up and what file it runs
9) Check the entries against the what you wrote down in step 4, delete the one that matches
10) The find the file from step 4 and delete it.
Do NOT play with anything else on the registry editor as messing around in there can cause system instability or failure.
EDIT: I probably should have mentioned this before, if the fake anti-virus has pop-up with a block or allow type option when attempting to do anything select allow.
If you are stuck on the getting the internet to work again part try downloading the install for Firefox or Chrome on your desktop then transfer it to you laptop and install it.
IEs internet options is a central one that windows applications run off whilst Firefox and Chrome have their own separately.
If the virus sets up the proxy options for firefox it is under Advanced > Network (in the sub tabs) > Setting (in the connection frame) and javascript can be disabled from the "content tab" by un-ticking the "enable javascript" box
Firefox was the browser I used to fix the problem on my brothers computer and allows for a much easier method of disabling javascript than IE.