This is from CNN's site (link is below), which to me makes it credible and serious enough to pass on.
phil



(AP) -- From iPods to navigation systems, some of today's hottest gadgets are landing on store shelves with some unwanted extras from the factory: pre-installed viruses that steal passwords, open doors for
hackers and make computers spew spam.
Computer consultant Jerry Askew says a digital photo frame tried to infect his computer with four viruses.

Computer users have been warned for years about virus threats from downloading Internet porn and opening suspicious e-mail attachments. Now they run the risk of picking up a digital infection just by plugging a new gizmo into their PCs.
Recent cases reviewed by The Associated Press include some of the most widely used tech devices: Apple iPods, digital picture frames sold by Target and Best Buy stores, and TomTom navigation gear.

In most cases, Chinese factories -- where many companies have turned to keep prices low -- are the source.



This is the CNN link. It says that keeping one's antivirus programs updated can help. It also said that sellers are less then cooperative giving information how they are treating the situation.

http://www.cnn.com/2008/TECH/ptech/03/13/factory.installed.virus.ap/index.html