This is an e-mail worm which spreads using Microsoft Outlook... It sends itself out using Microsoft Outlook to all addresses in the Outlook address book and the Microsoft Messenger contact list.
So what else is new? Perhaps someday there will be a class action lawsuit against Mr. Gates & Co. for the bajillions of dollars and hours of productivity lost because of their unbelievably insecure software.
In the meantime, a couple of solutions to this problem:
1. Don't use Microsoft Outlook or Microsoft Outlook Express. There are plenty of other excellent email programs out there and most are free.
2. If you MUST use Outlook, make sure you have anti-virus software installed. Update your virus definitions on a regular (ie weekly) basis. Get and install a copy of ZoneAlarm, a personal firewall. It's free and excellent.
Actually, everyone should be running anti-virus and firewall software. If they were, the spread of viruses would be nill. And ZoneAlarm will prevent the various 'phone-home' software applications from communicating with their mothership.