How bad is the malware situation? Bad, and getting worse.
EWeek reports:

… a Microsoft security official said businesses should consider investing in an automated process to wipe hard drives and reinstall operating systems as a practical way to recover from malware infestation.

“When you are dealing with rootkits and some advanced spyware programs, the only solution is to rebuild from scratch. In some cases, there really is no way to recover without nuking the systems from orbit,” Mike Danseglio, program manager in the Security Solutions group at Microsoft, said in a presentation at the InfoSec World conference here.

Via Slashdot

I agree about wiping the hard drives, reinstalling from scratch; advocated for it years ago, when I made my living as a PC tech. It’s the only way to be sure … and even then I’m not sure we can be sure … I think.