It sends an email that exploits the Object Tag vulnerability in Popup Window (MS03-040), which allows a malicious user to run arbitrary code on a user’s system. The email message it sends for this particular email propagation routine does not have an attachment but a link to the virus copy. When viewed, this email attempts to download PE_BAGLE.Q from a certain location.
Email Virii WITHOUT attachment spreads
Source: PC Perspective
I strongly suggest anyone who uses IE that is not fully patched with all the patches available, to read our post in the forums and make sure you check out the Microsoft link to get th patch needed to ensure you dont get infected with this latest variant. This is a nasty virus and will infect all versions of IE greater than 5.01 AND this time this includes the potential to infect any Microsoft OS since Windows 98.