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Microsoft Live Essentials detected the following items today:

Exploit: Java/CVE-2010-0840.HH VirTool:

Win32/VBInject.gen!HO

TrojanDownloader: Java/OpenConnection.OU

It's since cleaned these items and I've now downloaded the latest definitions and have also initiated a full scan (using MS Live Essentials). I'm also running a full scan using Webroot's Spy Sweeper.

I'm quite paranoid about the effects of these detections and I'm wonder if I should simply reformat my machine?

Ray
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If the compromise was on the administrator level, then you can't assume the system is trusted anymore (any files could have been modified to put a back door, change behavior, etc.) So to be thorough you would have to re-install.

If the compromise was on the user level, then you can just delete/re-add the user.