Well this is one very embarrassing day. Given my day job 🙁
The brand new WordPress 2.7 instance I setup for my wife, got hacked
Still not sure how, the access logs are not very conclusive, but someone managed to edit every header.php file under the themes folder and inject a trojan “exploit-iframe.gen.c”
I found a similar story hear. http://photocritic.org/wordpress-exploit-iframe-gen-c/
Yes, I admit I allowed apache write access to the themes folder. which i have now fixed
The Code also included a refernce to “search_bot111”
The searchbot code seems to be a bit of PHP?? to hide the site/trojan from search engines
needless to say i am VERY annoyed
« young blogger 2.7.1 »

Ooops
[*goes off to check permissions for the shonky setup he’s just done*]
this is worth a read
http://wordpress.org/support/topic/242327