Solution:

Terminating the Malware Program
This procedure terminates the running malware process.
1. Open Windows Task Manager.
• On Windows 98 and ME, press CTRL+ALT+DELETE
• On Windows NT, 2000, XP, and Server 2003, press CTRL+SHIFT+ESC, then click the Processes tab.
2. In the list of running programs*, locate the process: WSCRIPT.EXE
3. Select the malware process, then press either the End Task or the End Process button, depending on the version of Windows on your computer.
4. To check if the malware process has been terminated, close Task Manager, and then open it again.
5. Close Task Manager.

*NOTE: On computers running Windows 98 and ME, Windows Task Manager may not show certain processes. You can use a third party process viewer such as Process Explorer to terminate the malware process.
On computers running all Windows platforms, if the process you are looking for is not in the list displayed by Task Manager or Process Explorer, continue with the next solution procedure, noting additional instructions. If the malware process is in the list displayed by either Task Manager or Process Explorer, but you are unable to terminate it, restart your computer in safe mode.

Editing the Registry
This malware modifies the computer’s registry. Users affected by this malware may need to modify or delete specific registry keys or entries. For detailed information regarding registry editing, please refer to the following articles from Microsoft:
a. HOW TO: Backup, Edit, and Restore the Registry in Windows 95, Windows 98, and Windows ME
b. HOW TO: Backup, Edit, and Restore the Registry in Windows NT 4.0
c. HOW TO: Backup, Edit, and Restore the Registry in Windows 2000
d. HOW TO: Back Up, Edit, and Restore the Registry in Windows XP and Server 2003
Restoring Registry Entry
1. Open Registry Editor. Click Start>Run, type REGEDIT, then press Enter.
2. In the left panel, double-click the following:
HKEY_LOCAL_MACHINE>SOFTWARE>Microsoft>Windows NT>CurrentVersion>Winlogon
3. In the right panel, locate the entry:
Userinit = “%System%\userinit.exe,%System%\wscript.exe “%system%\killVBS.vbs””
(Note: %System% is the Windows system folder, which is usually C:\Windows\System on Windows 98 and ME, C:\WINNT\System32 on Windows NT and 2000, or C:\Windows\System32 on Windows XP and Server 2003.)
4. Right-click on the value name and choose Modify. Change the value data of this entry to:
%System%\userinit.exe,
5. Close Registry Editor.

Restoring AUTORUN.INF
1. Right-click Start then click Search… or Find…, depending on the version of Windows you are running.
2. In the Named input box, type:
AUTORUN.INF
3. In the Look In drop-down list, select a drive, then press Enter.
4. Select the file, then open using Notepad.
5. Check if the following lines are present in the file:
[AutoRun]
shellexecute=wscript.exe killVBS.vbs
6. If the lines are present, delete the file.
7. Repeat steps 3 to 6 for AUTORUN.INF files in the remaining removable drives.
8. Close Search Results.
Important Windows ME/XP Cleaning Instructions
Users running Windows ME and XP must disable System Restore to allow full scanning of infected computers.
Users running other Windows versions can proceed with the succeeding solution set(s).

Here are some informations:

lsass.exe(3920kb) in c:\documents and settings\all users\start menu\programs\startup

smss.exe(4088kb) in all root drives and in c:\windows autorun.inf(1kb) in all root drives with a script

[autorun] open=smss.exe shell\Open\Command=smss.exe shell\open\Default=1 shell\Explore\Command=smss.exe shell\Autoplay\command=smss.exe Funny UST Scandal.avi.exe(228kb) in all root drives
Registry Entries-HKLM\Software\Microsoft\WindowNT\CurrentVersion\Winlogon=shell(killer.exe) HKCU\Software\Microsoft\windows\Currentversion\Run=runonce(c:\windows\smss.exe)

How to remove this virus?

1. Download taskiller in http://www.rsdsoft.com/task_killer/index.php4 and install it toyour computer because you cant use taskmanager to terminate the virus(the virus automatically close taskmanager).
2. Run taskiller and left click it on the system tray(the one with a skull icon)
3. Click processes
4. To close the virus, select process and click yes to the question
5. Close these process: killer.exe, lsass.exe, smss.exe, xmss.exe, Funny UST Scandal
6. Open command prompt (Run –> type “cmd”)
7. Type “cd\”
8. Type “attrib -h -s xmss.exe”
9. Type “attrib -h -s xmss.exe”
10. Type “attrib -h -s autorun.*”
11. Type “start c”
12. Delete the following files inside the drive: “xmss.exe, smss.exe, autorun.*, funny ust scandals.*”
13. Type “cd windows”
14. Type “attrib -h -s xmss.exe”
15. Type “attrib -h -s smss.exe”
16. Type “attrib -h -s autorun.*”
17. Type “start c:\windows”
18. Delete the following files inside the folder: “xmss.exe, smss.exe, autorun.*, funny ust scandals.*”
19. Type “cd c:\windows\system32″
20. Type “attrib -h -s xmss.exe”
21. Type “attrib -h -s xmss.exe”
22. Type “attrib -h -s autorun.*”
23. Type “start c:\windows\system32″
24. Delete the following files inside the folder: “xmss.exe, smss.exe, autorun.*, funny ust scandals.*”
25. Open “run” type “msconfig”
26. Select “startup” tab
27. Uncheck “xmss.exe, smss.exe”
28. Open “run” type “regedit”
29. Click “Edit –> Find…” or “Ctrl + F”
30. Find “smss.exe, xmss.exe” delete

Check the other drives(usb drives) of your computer. Do steps 7 – 12 before you continue deleting “xmss.exe and smss.exe” in “registry editor”.

Credit By Comp Tips