This was mentioned previously as a Kazaa Worm here

However, this is MUCH more than just a Kazaa worm and it is rapidly spreading this morning. This is a multi-faceted virus / worm that spreads via SMTP email and Kazaa. It also shuts down most antivirus programs and processes, opens a remote connection and initiates an HTTP server on the infected machine, establishes a connection to both IRC and AIM and awaits further instructions, etc.

Most, if not all, of the AV companies have released updated files to detect and block this threat. Everyone should update their AV software as soon as possible to make sure they don't become a statistic.

Here is a link to some more information on this threat:

McAfee

Trend Micro