When an infected HTML file is opened, the virus uses the Microsoft VM ActiveX Control (MS00-075) to execute itself. It locates the Windows Active Desktop template directory and replaces the file "FOLDER.HTT" with an infected copy.
The virus will also make a copy of itself to the root of drive it was executed from as "FOLDER.HTT" and changes the system configuration from registry in a way that this
file is executed every time when user browses a directory when the Windows' Active Desktop feature is enabled.
This virus contains a payload that activates on September 26th. On this date, the virus shuts down Windows when user closes a directory in an infected system provided that the Active Directory feature is enabled.
Further information about the Microsoft VM ActiveX Control (MS00-75) vulnerability is available at: