Curious Yellow is the name of a theoretical virus (also one of the first porn movies). The idea behind Curious Yellow is it rapidly deploys to systems (much like blaster, welchia, and the recent sasser) via open ports.
Once a system is infected the virus goes to work looking for other systems to infect. It also opens a backdoor for the orignator of the virus to be able to send new code and instructions.
What makes Curious Yellow truly devestating (in theory) is what it does when it comes across a system that has been immunised to it. If it finds a system that rejects its attack it sends out a call to the infected systems to initiate a Denial Of Service or Ping of Death attack. This effectively shuts down any site or computer that has the fix for this bug.
Depending on how fast it distributes it could in theory own the net. It would sit idle on the system until the creator sends out instructions (which could include rumaging through financial records and such). Any individual or group that moves to remove the virus and immunise would be knocked off the net by all the others systems.
The recent virie have shown that the rapid distribution necissary for curious yellow is possible. A recent bug called gaobot showed that they are working towards creating a stable virus with a back door for future instructions. The only trick to figure out yet is the organised DOS attacks.
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