Well, just a quick update
1) Once executed, this file loops a swf of Nick Berg's beheading (old school shit, son) and will continue to loop infinitely; even after restart . I ran a packet sniffer, but couldn't see anything untoward (it does "call home" in order to download the "head.swf", so there is probably something else going on).
I have set something up, so we will see. Nothing that immediately screams account hijacking.
2) This is my favourite part, a quick Google search found the source code on pastebin. Nice.