After that hacker scare I've decided to post this list of security programs that I've collected and keep updated. These programs are all free and do not have conflicts with web programs and p2p software.
Anti Virus:
AVG
Avast!
Firewall:
Kerio Personal Firewall
Anti Spyware:
Spyware Blaster
Spybot SD
Adaware SE
Windows Defender aka MS Antispyware aka Giant Antispyware.
Windows OS Cleaner:
CCleaner