[ItsBacon]

Yes, it is a virus. This virus was going around campus here, albeit with a rather different message, but it seems to be the same thing. More information can be found here:

http://www.trendmicro.com/vinfo/virusencyclo/default5.asp?VName=WORM_MIMAIL.C

[tacticalogic]

This one is mimail.e. Pretty much the same payload, except the DoS component is targeted at anti-spam sites.

[NathanR]

ping (virus)