Matter of fact my system got pretty slow about 30 minutes ago, had the busy symbol by my cursor, and then said "a program is trying to shut down avast... let it? Yes/No"
Naturally I chose no. Then I noticed the java icon in my tray. Shut that down ASAP. Turns out yahoo was up to check my mail. Probably snuck in via one of their stupid ad banners. Checked task manager for anything suspicious, but nope. I'm convinced it was JAVA initiated. Checked a few things, made sure I was good to go.
Otherwise I have a somewhat safe setup for MSIE. I also have Firefox because I like being able to shut off javascript with a single checkbox.
No kidding, this exploit really is out there.