As reported
here in eweek, there is yet another trojan spreading via MSN/WLM purportedly sending users pictures from their other contacts. As has been said before, be VERY CAREFUL about opening pictures and other attachments in your WLM. If you have the slightest doubt, DON'T.
Make it a point to always update your antivirus and antispyware scanners, and do periodic scans of your systems. Let's be safe out there.