This appending virus is the first reported JPEG infector. It is multi-component in nature, requiring an extractor file to extract (and execute) the virus body from infected JPEG files.
Infected JPEGs are unable to replicate on non-infected machines - ie. machines without the extractor component installed (hooked in the Registry).
McAfee products running the 4185 DATs (or greater) with program heuristics enabled, detect both the virus body (11,780 byte PE) and its extractor component as virus or variant W32/Alcop@MM.
This virus is a proof of concept and it has not been seen in the wild.