Ouch.. this is what it does once it gets on your server, from
news.com
"After it has taken over a site, the worm deletes all HTML, PHP, active server pages (ASP), Java server pages (JSP), and secure HTML pages, and replaces them with the text, "This site is defaced!!! This site is defaced!!! NeverEverNoSanity WebWorm generation X," according to Kaspersky. For "X," the worm inserts a number representing how far the current instance of the program is descended from the original worm release. MSN searches have found 24th generations of the worm."
Makes me wonder if it is able to get past the webroot, wiping out all backups as well.