Update 4 - probably the last (11:27) Daniel Aguilar recommends Antivir Personal, a free antivirus software from filehippo.com. Link is here: http://www.filehippo.com/download_antivir/
Update 3 (10:14): This hubpages page (http://hubpages.com/hub/How-To-Remove-Koobface-Virus) links to free anti-spyware software that received good reviews from CNET (though they warn that some settings can lead to slower performance, story here: http://download.cnet.com/Spyware-Terminator/3000-8022_4-10741021.html). Also, it lists the registry files you need to change, if you should feel like removing it manually.
Update 2 (10:08): Looks like it's a variant of the Koobface worm that struck FB a while ago. (Snopes reports on it here: http://www.snopes.com/computer/virus/koobface.asp). McAfee has a page dedicated to this here: (http://www.avertlabs.com/research/blog/index.php/2008/12/03/koobface-remains-active-on-facebook)
Basically, Snopes advise contacting FB security, changing your FB password, and running anti-virus software on your computer.
Update 1 (10:02): A Google search indicates a secondhand report of this virus on the Bedfordshire police department's FB page 13 hours ago. Also, a friend has confirmed that it's spread by clicking on it. If you've been infected, contact Facebook security. http://www.facebook.com/help/?topic=security
Looks like something's happening right now on Facebook. Wall posts with the words
"[Your name], this video is from the dance academy i went to last week.. what do u think?"
There's a link to a video titled "Redhot sexy girl in thong dancing [HQ]"
Not sure how it's being propagated - whether it requires you to click on it or not. It appears to be traveling too quickly for that.
Needless to say, don't click it!
Will post updates on this soon.
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