What is it?
Floodnet virus kernel32.exe

What does it do?
This is a remote access trojan and worm. When run, it attempts to send a message to the alias
"All Users" using Microsoft Outlook. If this address is not present in a local or global address book, or not an alias on the specified SMTP server, then the message will not get sent.

Removal:
VSS has the full dirt (HERE)