http://redtape.msnbc.com/2008/01/digital-picture.html
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The infection was limited to the 10.4-inch version of the Insignia frames, with a model number of Number NS-DPF10A, Best Buy said. The firm did not identify the scope of the problem other than to say it impacted “a limited number” of the devices.
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The problem was discovered in early January, but Best Buy didn’t post a notice about it until Saturday because the firm was trying to “get a handle” on its inventory,” said spokeswoman Nissa French.

The company has not directly contacted consumers who purchased the picture frame, French said. It will do that when it has developed a detailed solution. “We want to communicate everything at once, for the best customer experience,” she said. She said that "fewer than two dozen" consumers had returned the devices to stores complaining about the virus.

Some might question the firm’s delay in notifying consumers, who might still be able to avoid infecting their PCs. Only consumers who connect the gadget directly to a PC running the Windows operating system risk infection, Best Buy said. Even then, users with updated antivirus products would be protected. Consumers who only slipped memory cards into their picture frames are not at risk either, the company said.

It is not clear how the virus landed on the hardware, but the firm said the contamination occurred "during the manufacturing process." French could not say how many consumers have complained about infection.
Those who purchased or received the frames can call Insignia customer service at 877-467-4289 for more information.
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While there are many possible explanations for the Insignia frame infection, Ramzan said a “rogue employee” was the most likely possibility.
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Not stated in the article, but the actual virus involved wasn't idenified. Would one dare to run with the conjectured 'mob' type connections as being involved with this? Imagineallthe gear these days that are plug&play once it's unwrapped.

And of course, the really nasty question .. how many folks 'received' this as gift and still haven't noticed anything 'wrong' ...????

Yeah, well, a whole new meaning for the term "a connected refrigerator". The nightmare begins. But the word is well and truly out on the picture frames, the search terms picture frame infection turns up about 26,000 Google hits currently and making it more specific by adding insignia still gives a hefty 5,720.

"Robo-Hunter" wasn't so far-fetched after all, eh? Revealed now as merely the next step in the continuing evolution.

Apparently the items have been selling quite well even though I think they are overpriced.

Why not get an old laptop on ebay with windows 98 on it and a low en processor (something that doesn't need a big fan) Detach the screen, flip it around put it a nice wood frame and have something twice the size that can do so much more

of course you might say time it takes isnt worth the $100 it would cost to buy a digial picture frame. but the finished picture frame would not be the equivalant product of the picture frame.. it would more likely be a $1000 picture frame. :-)

And now there's the Vulnerable Coffe Maker. More "observations" at Jura F90 internet-connected coffee maker. I await tales of the feral fridge, the robot rubbish bin and the berserker bread bin - all of which must surely lie in our near future. O brave new world that has such appliances in it.