Microsoft did NOT release IE7 as part of the patch Tuesday. There are however 10 patches including several for Microsoft Office, many of which are critical patches. If you use Office 2000, you will not get the patches automatically through the Windows update process. You must go to http://www.microsoft.com/office. 

Brian Krebs at the Washington Post (registration may be required) has more at the Security Fix Blog 

We've been dealing with a large number of reports of e-mails which appear to be receipts for a computer purchase from Target or Wal-Mart or other stores. The e-mails have a .zip file attached which has viruses in it. 

Under no circumstances should you open the attachment. It and the e-mail should be deleted.

The messages look something like this 

=====================FRADULENT MESSAGE=========================