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I think I am making some headway. Thanks to all who posted.
Here is what I did in case anyone is in the same boat.
I went into the menu on my webhost and went to the SQL tool. I then searched my entire database for "uokill" which is part of the virus name. I selected the files where they were located, about 3 places, and edited them deleting the <iframe>. I could not see the virus in my custom blocks like some others. It was invisible. I had to go through the backend.
Unfortunately I now have this problem. I get the error message:
"This page cannot be displayed due to an internal error.
If you are the administrator of this site, please visit the XOOPS Troubleshooting Page for assistance."
I manually turned on debugging but get no error messages.
The only thing I did was change the password to my webhost and turn on something called "AnonFTP" by mistake, then turned it off. After I did those 2 things I got the error.
Any ideas on what to do next would be appreciated.