Given that its possible for a program to detect that its being run under a debugger, wouldn't it be possible for a virus to behave differently in the debug environment?
Yes. But todays computer viruses are very simple and very weak. Wait a few years and they should be a lot more powerful.
[...]
IE: how do you know that the behavior you see in the lab reflects behavior in the real world? (I get a kind of 'schrodingers cat' deja vu).
You can always disassemble the virus, which is what people will do if it's a real "popular" one such as MyDoom. Then you know for sure what it's going to do. Viruses are very easy to understand because they're so small compared to the average windows program.
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