A few days ago, my fellow blogger Kirsch posted about his blog being hacked. Well, I was victim of the same attack. Both of our blogs run on DreamHost and use WordPress.
I found a detailed description of the attack here, however this description refers to a 2 year old attack. I highly doubt WordPress would go this long without a patch to fix the vulnerability.
Everything has been restored to normal thanks to my backups and tools provided by DreamHost.