Thank for all the help guys. It is much appreciated!
I am running Windows XP SP3. Ok, I understand the Firewall concept. I could install a Firewall that asked for EVERY connection, which is totally user-UNfriendly, but it would have stopped this backdoor from working unless I was stupid enough to allow it.
It appears ~.exe is actually a dropper... which is a backdoor, I guess, since it allows the downloading and installing of whatever it wants.
I am thinking that it is unlikely a personal actually went sniffing through my files since I didn't notice any activity, and nothing else on my system was infected with anything virus-like. However, the dropper could have downloaded a perfectly good (i.e. non-virus) program to run and act as a backdoor, so I wouldn't have noticed anything. Avast! did report some virus in memory but because the pop-up disappear (since I was typing as it came up, and my typing cancelled the dialog box
) I am not sure what it actually was. Avast! no longer reports ~.exe as a problem as you can see from my VirusTotal.com report above.
If I really did get ~.exe from a website, then they knew my IP, as well, which means they could have gotten straight to my computer the moment I got it.
But... I am behind a router, which is a hardware firewall! Question: Would my router have blocked the backdoor?