Killed it.Its the famous Kamasutra/blackmal/CD-VB.If anyone gets infected by it heres the process to disinfect:
Download the virus removal tool for blackmal.e from Symantec.com.
Unplug the machines from the network.
Run the removal tool from CD ROM cause if anyone try to run it from a pendrive/floppy the virus will get into it and might corrupt the emoval tools.
This will clean up your machines completely from the virus.
Now install any good anti-virus with the latest update.I m using Norton.
Run a full system scan.
Plug into the network.
But remember to clean all the machines in the network if they get affected cause if a single machine contains it, it will run through the network like hell.
Facts:It will upgrade itself on every 3rd of the month, only if its already in ur machine.
Theres nothing to worry about while accesing the E-mail,just be careful not to download anything dubious,particularly .scr,.mim files,it might come from a friend's address of yours thats the way it spreads.
As far as I have seen it won't effect the files that r within the folders,only the open placed files r getting affected.
If the virous affects your PC u will see lots of zip files in your PC and a winzip.tmp file in C drive.
Thats it.
Cheers!