Dubbed "MSBlast" by its author, the worm is spreading quickly, according to an initial analysis posted to the Internet Storm Center, a digital threat-tracking site. However the worm doesn't just target Internet users, it takes dead aim at Microsoft's windowsupdate.com Web site, where users download the latest security patches for the company's operating systems.
The 'time bomb' in the worm's code, discovered by anti-virus and security researchers, will turn every infected system into a DoS agent on 16 August, this Saturday. The systems will begin sending random strings of data to the windowsupdate.com Web site in an attempt to knock it offline. If the DoS attack is successful, administrators will be unable to patch their systems against the vulnerability exploited by MSBlast.
The worm also contains anti-Microsoft messages in its code: "billy gates why do you make this possible?" the second part of the message says. "Stop making money and fix your software!!"
Ever since mid-July, when Microsoft announced a vulnerability in a widespread component of Windows, security experts have been waiting for some online vandal to create a worm that takes advantage of it.
"[MSBlast] is pretty widespread," said Johannes Ullrich, chief technology officer for the storm centre. "It is sort of getting to the point where it is causing some slowdown."
Some system administrators posting to a mailing list run by the North American Network Operators' Group, a popular forum for engineers who maintain large networks, believe that as much as 10 percent of the data coming into their networks has been created by the worm.
Starting with a random Internet address, the worm sequentially scans for computers with the vulnerability.
MSBlast installs the Trivial File Transfer Protocol (tftp) server, and runs the program to download its program code to the compromised server. It will also add a registry key to insure that the worm is restarted when the host computer is rebooted.
The worm attacks Windows computers via a hole in the operating system, which Microsoft warned of 16 July. Nine days after the software giant announced the flaw, hackers from the Chinese X Focus security group publicly posted a program to several security lists designed to allow an intruder to break into Windows computers. The Windows flaw has been characterised by some security experts as the most widespread ever found in Microsoft's OS.
The flaw is in a component of the OS that lets other computers request that the Windows system perform an action or service. The component, known as the remote procedure call (RPC) process, facilitates activities such as sharing files and allowing others to use the computer's printer. By sending too much data to the RPC process, an attacker can cause the system to grant full access to the system.
The Chinese code worked on only three variants of Windows, but other hackers have since refined it. Nine days ago, a hacker posted an attack program to a security mailing list. Many facets of the current worm seem to be similar to that program.
Experts have feared that a worm created to take advantage of the Microsoft flaw could have an effect similar to that of the Slammer worm that downed corporate networks in January.
Slammer spread to corporate networks worldwide, causing databases to go down, bank teller machines to stop working and some airline flights to be cancelled. Six months earlier, a researcher had released code that exploited the major Microsoft SQL vulnerability used by the worm to spread.
Patrick Gray contributed to this report.











I feel sorry for those users that have to run Windows OS. They seem so suffer so much at the hands of bad programming and virus/worm writters. To compound the problem more, suffering users have to patch and/or buy 3rd party virus software.
I see, on average, two viri pass through my mail client every day but it does not worry me. I even open them up and look at the attached virus executable.
Why am I not worried? because I run a Mozilla mail client on Linux (Slackware 9.0). They cannot be effected by the attached virus. If they did they would be contained very quickly.
So, you may have noticed, it doesn't have to be this way, there are alternatives to the Windows cycle.