I get emails with Klez attachments all day - that alone won't infect you. You must run the attachment to get infected.
All Klez emails have different subjects and message bodies BUT there's one thing that's consistent. There's ALWAYS two attachments. One is a harmless image or HTML file, and the other is a PIF, EXE, COM or BAT file that carries the virus.
If you only get the harmless file then your ISP probably has automatic virus scanning on it's mail server (something that's becoming more and more common).
Now the problem is that there's a security loophole in Outlook that the virus uses to spoof Outlook into opening the save/open attachment dialog. However, if you're using default settings the dialog window should come up and ask if you want to save or open the file.
What happens is some people just click OK without thinking about it.
To close the security loophole you need to apply the latest Critical Updates using Windows Update.
The other thing you need to do is make sure your anti-virus data files are up to date.
As Blade points out, this virus SPOOFS the return address and because of that some people are getting returned emails they never sent, and also getting automatic messages from mail servers saying they emailed a virus. That doesn't neccessarily mean you have the virus - it just means that the virus on someone's computer is using YOUR email address as the return address (my wife is getting 30 of those a day).
If you think you're infected it's easy to tell. Fortunately this programmer wasn't being as malicious as he could have been - he doesn't even try to hide the virus. If you're infected then if you run MSCONFIG.EXE, you'll find an entry in the Startup tab called WINKxx.EXE (where xx = any random letters). That's the bootstrap for the main virus. You can't just uncheck it and delete the file though - it'll come back because it also infects ALL your EXE files.
If you're infected you'll also find your McAfee or Norton taskbar icon is gone - Klez disables any anti-virus apps and you'll have to re-install them afterwards (Norton needs to be completely uninstalled and the registry entries wiped before re-installing).
Your system will also slow down a LOT if infected and you'll notice a LOT of drive access while the system is idle - that's the virus scanning EXE files on your hard drive and infecting them.
Detailed instructions and the free Klez removal tool are located here:
http://securityresponse.symantec.com/av ... .tool.html
I've heard of many instances where computer shops have told people they had to wipe their drives to get rid of the Klez virus because it damages so many system files, but that's a CROCK.
In my experience the removal tool repairs all system and program files and only deletes primary vector files (the files that initially infect you). I've had no problem with full system recoveries.
Too many of these computer stores don't do the research online and have no idea how properly remove the virus. They try to get rid of it with a regular virus scan WHICH DOES NOT WORK. You need to use the removal tool. I've done manual removals before the tool was released and it's a BITCH.