This is a new attack, where by the victims files are pack in to an encrypted file and the password is only released after a "ransom" is paid.

For the full piece read on:
http://www.theregister.co.uk/2006/06/06/ransomeware_trojan/

Good PSA (Public Service Announcement)

I read about that nasty virus a few months ago. Thank goodness they are white-hat hackers around to help out. On a related note, this an example why any DRM scheme is destined to failure, there is always someone around to crack a code.

Thanks for the good information.