It displayed Windows XP like alerts, "Windows Security Alert" in all the colourful WinXP crayola themed glory and then proceeded to pop up another realistically rendered "window" which simulated a scan throughout my vulnerable Windows system. Yes, the windows were drag-able.
It looked something like this:


But what about the rest of the world? The vast majority of people who would be fooled by this cleverly rendered HTML/CSS/JavaScripted page? At the threat of "Security has been damaged by virus[sic]", a large number of people will want to eradicate the pesky virii. Thus, a high percentage who would click on "Run Application" after downloading.
So if you are the so-called "Tech Support" for your family/relatives/friends (its a thankless job), you could save yourself alot of headache by educating your "users" about these threats. Change the default theme to something different. Install a net-nanny. Install a real Anti-Virus app (or two) which is updated frequently. Lock down the users' permissions. Boot read-only. Charge by the minute. Ban the user from computers.
Alternatively, you could get them to run Linux.
yk