Hi All
I've been looking into this myself. the suggested fix is what is needed, however i wish to add something else here, PASSWORDS!
The people behind this only seem to use this hack when they search for new sites ('My new Exponent site' etc)
http://www.google.com.sa/search?hl=ar&safe=active&client=firefox-a&rls=org.mozilla:ar:official&hs=qL5&q=%22my+new+exponent+site%22&start=10&sa=N according to my server logs anyway. They then go to the www.example.com/login.php and try their luck with admin admin etc then pass in the info to the URL to inject the code.
r--
There are many sites out there that keep a huge list of passwords and their MD5 equivilents. it doesn't take a genius to find and use these just ask Google for MD5 reverse passwords and you'll get a hundred sites offering this so........if you have week passwords...change them. That goes for databse passwords, admin password and ftp.
I know that there are a lot of people out there working on supplying the fix/patch for this as we speak. However in the meantime please be a secure as possible with your passwords and code. What has been suggested at the top of this post is excellent and with a combination of both suggestions here it will secure your site against this sort of hack.
Just a bit more info on it really.
Rob