> Does anyone have any idea how this works ?
> 
> I have all the latest critical updates and cannot find a setting in Outlook
> Express to prevent this so could this possibly used for an exploit ?

maybe this is not even a virus but a default behavoir of express
here is how to disable it

select tool > options > 
in the windows that opens select "send"
uncheck "Automatically put the people that i reply in my address book"

and that will be the end of this 


- aditya

ps. next time please send this type of question to the security basics list and then 
send it over here
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