A Microsoft spokesman said in an email Sunday that the software giant activated its emergency response process following reports of the malware, which attackers are reportedly using to expand their IRC-controlled botnets. Cupertino, Calif.-based Symantec Corp. is calling the malware W32.Wargbot, while Tokyo-based Trend Micro is calling it WORM.IRCbot-JK and Santa Clara, Calif.-based McAfee Inc. has labeled it IRC-Mocbot!MS06-040.
When the malware infects a machine, it downloads a botnet program that then connects to IRC chat servers in China and elsewhere, allowing attackers to control the machine to do "whatever they want," including the ability to flood other systems with a distributed denial-of-service (DDoS) attack.
Even thought the State of RI is monitoring the above flow through the Intrusion Prevension Systems (TopLayer, State's IPS vendor) released the signature update for this flaw on Saturday, Aug 12 2006, Department of Homeland Security and RI DOIT Information Security Office recommends that agencies apply the August security updates as as quickly as possible.
Reference: http://www.dhs.gov/dhspublic/display?content=5789
See all DOIT InfoSec advisories at http://www.doit.ri.gov/security/advisories web site.