Prevention: Same as Code Red, install the index server patch if you are running IIS index server (Content Index Service). For that matter, if you have it installed and are not using it, remove it all together
If you are already infected... all the advice I have seen indicates reformat and reinstall as the only sure option. Once a hacker has a clean back door to your system there is no telling what other back doors may have been installed- some known, others perhaps brand new and hence unknown.
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