Mechel Conrad writes: "Heise Online(German) writes about a Virus called SWF/LFM-926.
It consists of a Macromedia Flash movie and seems to be the first of its kind.
It uses Flash's scripting language in order to open a debug terminal creating and executing a file called V.COM, which infests other .SWF Files.
Although the virus is not very dangerous and not widespread yet, it suggests clear security holes in Flash."
of the Heise article is quite readable, too. Update: 01/08 22:47 GMT
adds: "this report on Yahoo lists a new Shockwave virus as low grade due to the need of manual downloading. infoworld is reporting that McAfee has upgraded to high risk after several Fortune 500 firms have reported it in the wild, arriving as an email attachment."