Yes, apparently can infect a fully patched Windows 7 machine.
Has it been determined by what means?
(What vulnerability allows it to do this?)
I know USB key is one vector.
Interesting that UAC would not prevent this (???).
It also demonstrates the uselessness of antivirus against anything other than known malware. Heuristics didn't seem very useful.
I do understand that quite a team must have been gatehr ed to write this and I recall reading somewhere (correct or not) that it was tested against various antivirus software to make sure it would not be detected.
Kaspersky should be getting some good publicity as it looks like they first discovered it.