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You knew it had to happen. Malware for Firefox. It happens all the time with IE (so much so that my 17-year-old niece needs a fresh install of Windows every 3 months), but Firefox has been a little less prone -- though not imune -- to malware. See the BitDefender blog post and the Infoworld article which has a bit more detail.
Now Firefox 3 does contain Malware protection, but apparently this plugin is delivered via other system compromises to the filesystem, and apparently Firefox doesn't question already installed plugins.
BTW, the malware registers itself as GreaseMonkey. If you care to, you can follow the Slashdot food fight on this topic.
More as I find out more...