Did anyone notice this story on SecurityFocus? It’s an article discribing a series of attempted malware infections that were first reported by the SANS Internet Storm Center over Christmas. Apparently, three people reported buying digital picture frames made by the same manufacturer from three different Sam’s Club stores. When plugged into a computer, the malware on the picture frames attempted to perform various nasty things.
This type of threat is likely to increase as more and more devices become digitally aware. Your best bet for protecting yourself is to disable the autorun feature in Windows. That way you can scan and examine the devices you attach to your computer before the malware they may be hosting has an opportunity to become a part of your digital life.