Microsoft has released a KB article on problems with the MS04-11 update causing problems on some machines including losing the ability to login or failure to respond after rebooting. If you've ran into this problem, or are preparing to deploy MS04-11, you can read up on the problem and the solution here:

http://support.microsoft.com/default.aspx?scid=kb;EN-US;841382

There's been an increase in Port tcp/1025 activity. NetCat data shows that the increase was from dcom exploit - something included in the Metasploit 2 framework, which could explain the increase. Traffic shows the typical 'MEOW' string.

Handler on Duty, Davis Ray Sickmon Jr