Yep, it's definately a self propagating virus.
I've gotten these supposedly mailed from me. The virus pulls e-mail addresses from users address book, website pages they visit bu scanning through their internet cache and the such and e-mails itself to everyone it can identifying itself as someone else.
Generally I learned to block all e-mail attachments using any type of executable file and generally don't accept anything attached unless it's an archived file.
Another good tip is when you publicly publish your e-mail address on websites and such use a free or at least web based e-mail solution since viruses cannot infect your computer from such accounts.