I concur with @Jason here (but my comment was too long to post as a comment).
It sounds like you have Back Orifice (or at least a modern equivalent of it) installed. This is a remote control program, probably installed as a Trojan, used to to control processes on your server from somewhere else.
It's likely that it is installed on your machine, along with a rootkit to ensure that you can't (easily) remove it, leaving your server completely compromised. That means that just trying to block it with a firewall would be futile; it would probably bypass the firewall anyway.
You should completely reinstall the server (if it's a VM, I would suggest that it be completely deleted and a new one provisioned, just in case it has installed a BIOS rootkit or something similar); it'll be less effort (and probably cheaper) than to try to remove any rootkits properly. When you do get it back, put the firewall up and block everything inbound other than your SSH port (if you're not sure how to do this, ask your hosting company to do it for you initially, then read up about it), apply all patches and then install your applications and data, configuring your firewall only to allow access to your application (which sounds like it's only the web server).
I would also make sure that your web server, application and database are fully patched; it is possible that your machine was compromised via the web application. I would also see about backing up your server so if your server is compromised again, you can restore from a Known Good Backup. (Of course, you'll have to test the backups so that you know they will restore when you need them!)