Hi Peter,
Spyware Stormer is considered by many to be a "rogue" spyware removal program. I.e. not entirely bogus, but not terribly reputable either. Any software that wants to hold you for ransom in this fashion isn't reputable, and it's entirely possible that it's displaying false-positive information to coerce you into buying their product. Here's a link to a list of these types of product.
http://www.spywarewarrior.com/rogue_anti-spyware.htm
Additionally, many people have had difficulty removing Spyware Stormer once it's installed as well as experiencing many pop-up ads. I am an IT professional and I use two free products.
Spybot Search and Destroy and AdAware. You can download each of these from downloads.com.
The reason I use both is that one will correct problems that the other wont, and visa-versa. They're fairly easy to use. Treat them like anti-virus programs and make sure you download any updates through each program.
Most people are prompted to install Spyware Stormer after receiving a pop-up which makes them believe that spyware has been detected. Never trust information which appears, seemingly out of nowhere, which prompts you to make changes to your computer. (Pop-ups, e-mail, etc.)
Spyware Stormer doesn't actually appear to damage or disable anything, but it's difficult to deal with once it's installed.
Spyware removal software and anti-virus software typically don't interfere with each other as they don't look for discrepancies in your computer in quite the same way. These days it's become increasingly important to have both.
Good Luck
