In an email IBM advised visitors to its AusCERT booth that its complimentary USB key was infected with a virus.

The malware is known by a number of names and is contained in the setup.exe and autorun.ini files. It spreads when the infected USB device is inserted into a Microsoft Windows workstation or server whereby the setup.exe and autorun.ini files run automatically.

IBM said in a statement that a "small number of IBM-branded USB sticks distributed to delegates at the recent AusCERT2010 conference were found to contain malware".

To fix any damage that may be caused by using the USB key, IBM recommended:

1. Turn off System Restore [Start - Programs - Accessories - System tools - System Restore] Turning off System Restore will enable your anti-virus software to clean the virus from your current system and any restore points that may have become infected.
2. Update your anti-virus tool with the latest anti-virus definitions. [available from your anti-virus vendor of choice].
3. Perform a full system scan with your anti-virustool to confirm the existence of the infection.  If malware is detected allow your anti-virus software to complete a clean.
4. On completion of this process, complete a second scan using a different anti virus product. Free anti-virus products are available from companies such as AVG, Avira, Panda Software or Trend Micro.
5. Once a second scan has been performed and it is determined that your workstation is free of any known malware. As a precautionary measure IBM recommended that you perform a backup of all vital files on your workstation and perform a full reinstallation of the operating system. This removes the risk of other unknown or undetected malware that may be present on your machine.

Ref: http://www.securecomputing.net.au/News/175451,ibm-unleashes-virus-on-auscert-delegates.aspx