Microsoft have confirmed that there is a flaw in Windows which will allow an information gathering trojan to access your computer via an infected memory stick.  This flaw affects all versions of Windows including the widely used Windows XP SP2 and the latest version (fully patched) Windows 7.

There are many news reports detailing how easy it is to get infected.  There is even a video on Youtube showing what would happen if you accessed an infected USB memory stick.  But is it really a major threat to the average user?  The answer is no, providing you have fully updated anti-virus software and make sure to virus check any USB devices that you attach to your PC.  

The trojan which is being referred to as Stuxnet is also known as W32.Temphid,  It was discovered on 14th July 2010 and Symantec (the makers of Norton Anti Virus) have issued the following threat assessment

Threat Assessment

Wild

    * Wild Level: Low
    * Number of Infections: 0 - 49
    * Number of Sites: 0 - 2
    * Geographical Distribution: Low
    * Threat Containment: Easy
    * Removal: Easy

Damage

    * Damage Level: Medium
    * Releases Confidential Info: Collects various information from compromised computers.

Distribution

    * Distribution Level: Medium
    * Shared Drives: Spreads through removable drives.
    * Target of Infection: Removable drives