That does not sound good. I'm sorry to hear that you are experiencing difficulties.
Out of curiosity, I would by interested to know: Why did you download "computer surveillance software that is capable of recording key-strokes" anyway? How do you know it was safe and from a legitimate source? Who is the Manufacturer that provided it? Where did you get it from? Exactly, what is the name of the program you downloaded?
This is not a very easy question to answer. However, I will give you a couple of tips to see if they might help you to resolve it.
First, I hope you do know the name of the program you downloaded. I would Click on "Start" > Control Panel > Add/Remove programs and look for it in the list (if it isn't there, then this would be one red flag). Do not uninstall it until you follow the next step.
If you know the name (or close to it) of the folder you are missing, or the files > Click on "Start" > Search > All files and folders > Enter in the information you think search might pick up on > Be sure you "Look In" all Local Hard drives C:, etc. > Click "More Advanced Options" > Check "System, Hidden, and Subfolders > Search
Also, you can search for files by typing in " *.txt " (without the quotes and see if you can find the files that way.
Otherwise, uninstall the program you installed through Add/Remove programs.
Another option is to use keywords, about the program you downloaded, on Google to see if others have had that same problem and to see if there is a resolution that will work for you.
I would really need to know a lot more information to really be able to help you with this issue, or to at least provide you with a more specific path to resolution.
Finally, my advice would be to be very careful when downloading anything from the Internet, make sure your computer is protected; i.e., with a Firewall and Anti-Virus (if it isn't already). If you do have an Anti-Virus program, make sure you update the virus definitions and run a "Full" system scan.
I hope that helps at least a little.
This may be helpful to you for future reference:
http://www.microsoft.com/protect/computer/default.mspx