http://news.bbc.co.uk/1/hi/technology/7183008.stm

A Virus dubbed 'Mebroot' has been infecting Windows operating systems, you might like to take a look at the writeup and check out the available definitions elsewhere on the internet.

All Windows Operating systems that haven't been updated are potentially at risk.

Prevention is the first method of dealing with such Viruses, however should you have been the unlucky recipient of such a virus you can use removal tools to remove it, however there is always the potential that something is missed. If your security has been undermined make sure you first secure your operating system (perhaps even reinstall) then change every password and secure phrase you use to something new. It use to be said you should change passwords at least once every three months, but with such attacks you can't wait that long.

hmm I didn't see how this one spreads...

For the most part malicious websites, it's possible that some might be installed via email but in essence the perpetrators haven't put 'all their eggs in one basket' which means there is no singular method of infection. As long as you are updated (make sure you use Spywareblaster to prevent activeX installations) you should find yourself more secure than most.

Thanks for the update! :)

In the words of Wierd Al.. "It's gonna turn your documents into swahilli"

Looks like it spreads via IE:

http://news.bbc.co.uk/2/hi/technology/7183008.stm

I specially liked this line:

"Mebroot cannot be removed while a computer is running."

My solution ---- boot with knoppix, move all files i want to keep to portable hard drive, restart, nuke the drive.

Solution:Linux.