Spyware Known_Bad_Sites points to a recognized bad site may have hijacked. Adware, Spyware and Phishing websites might use the Windows hosts file to send your web browser to a malicious website when you try to access a legitimate website such as your webmail for example.

These messages displayed by Spyware Doctor occur because you might have some bad websites added to your favorites websites in your browser…

Spyware Doctor will spot those websites and signal them as Spyware.Known_Bad_Sites. Remember every time you put in some bad websites like certain free software, free audio, free video ,and some other bad websites spyware doctor will continue to flag them with  Spyware.Known_Bad_Sites.

These sites can be websites you visited as well. They will leave a cookie on your computer.  Clean out your temporay internet files and cookies. Then run Spyware Doctor to verify that you have rid your computer of the infecting websites info.

From PCHell(dot)com:

Generally there might not be any reason to worry about all these files in your computer, but what if you sell your computer and all that information is left for someone else to see. Maybe friends and relatives visit and use your computer and you dont want everyone to know what files you are running on your computer. Then you are going to want to know how to delete these files.
Even if you are not worried about privacy on your computer, you may be surprised to realize how much hard drive space all this information takes up. If you are running out of drive space, you may want to delete these files.

How can I delete these files?
For Internet Explorer 5 and above, you can follow these directions to clear out temporary files and delete cookies.
1) Open Internet Explorer and click on Tools
2) Click on Internet Options
3) On the General Tab, in the middle of the screen, click on Delete Files
4) You may also want to check the box "Delete all offline content"
5) Click on OK and wait for the hourglass icon to stop after it deletes the temporary internet files
6) You can now click on Delete Cookies and click OK to delete cookies that websites have placed on your hard drive.

To clear the Internet History in IE:
1) Open Internet Explorer and click on Tools
2) Click on Internet Options
3) On the General Tab, in the middle of the screen, click on Clear History
4) Click OK
To clean up other temporary files on your computer in Windows 98 or higher:
1) Click Start,  Programs (or All Programs), Accessories,  System Tools, Disk Cleanup
2) Choose the correct drive usually C:\
3) Check the boxes in the list and delete the files

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Post brought to you courtesy of Computer Tips By Olan