Morpheus is a p2p (peer to peer) file sharing network. It claims it has no spyware.
http://morpheus.com/
The problem that came in Kazaa and Morpheus and others that allow you to download files from other people is you don't really know what you are getting. Many of those programs you download are filled with viruses and other malicious code disquised to look that song from Weezer you always wanted but never paid for.
The other thing with p2p programs is it gives people access to your files usually restricted to the shared folder you set up at the beginning. That is how the system works. You share files as do others. You get your files directly from that other persons computer through the p2p network.
Of course if you didn't download Morpheus direct from the Morpheus website you may have gotten a version designed to compromise your entire computer.
You might want to post a HijackThis log for the gurus to help you out
http://www.able2know.com/forums/viewtopic.php?t=54757
If it is just one offending file you can always start up in safe mode and delete it.