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Spyware is Internet jargon for Advertising Supported software (Adware). It is a way for shareware authors to make money from a product, other than by selling it to the users.

Why is it called "Spyware" ?
While this may be a great concept, the downside is that the advertising companies also install additional tracking software on your system, which is continuously "calling home", using your Internet connection and reports statistical data to the "mothership". While according to the privacy policies of the companies, there will be no sensitive or identifying data collected from your system and you shall remain anonymous, it still remains the fact, that you have a "live" server sitting on your PC that is sending information about you and your surfing habits to a remote location..... 

Is Spyware illegal?
Even though the name may indicate so, Spyware is not an illegal type of software in any way. However there are certain issues that a privacy oriented user may object to and therefore prefer not to use the product. This usually involves the tracking and sending of data and statistics via a server installed on the user's PC and the use of your Internet connection in the background.

Here are programs you can use to remove spyware

Ad-aware SE Personal Edition click here to download.  This is very quick, easy and free!  It will scan your computer for infected files and have you clean them.  Even if you use an anti-virus program you need this too.  This will get the known Data-mining, aggressive advertising, Parasites, Scumware, selected traditional Trojans, Dialers, Malware, Browser hijackers, and tracking components.  Things that are going on that you cannot see!  After you download it will do the scan and when the scan is done it will show you all the infected files and you can select them and delete them!  This will help your computer run faster too.

NoAdaware http://www.noadware.net/download/ This will scan your computer free for any infected files but you must purchase to clean the files.

Spybot Search and Destroy  - www.security.kolla.de
Spywareblaster - www.wilderssecurity.net/spywareblaster.html