I just came back to my site from dinner and was unable to find any posts listed in the dashboard.
After snooping around, I found that my .htaccess file was modified, and some new files were added to my home directory. I deleted the .htaccess code, and the files (they all started with PE).
I see that in the last hour a few posts regarding this have been posted on the wp.org forum site.
Is anyone else having trouble with this? Is there any more code for me to delete?