What is "spyware"? (definition taken from zdnet.com):

"Also known as 'adware', this hidden software program transmits user information via the Internet to advertisers in exchange for free downloaded software."

For more general information about spyware:

How do they get installed on the computer?

These programs are usually installed when visiting specific web sites, bundled with popular file sharing programs like Kazaa, LimeWire, iMesh, or come with ad-supported freeware programs that are downloaded and installed.

For more comprehensive information on spyware programs:

Detection and Prevention

You can download programs to check for and remove spyware from your computer and you can also set your internet browser to prevent programs from "auto-installing".

To set your browser to prevent programs from "auto-installing"

Removal

There is a free program, AdAware, that will remove spyware programs from your computer, as well as, web sites with manual removal instructions:

Additional Notes: