In "The Complete Windows Trojans Paper" that I released back in 2003 (you can also update yourself with some recent malware trends!) I briefly mentioned on the following possibility as far as physical security and malware was concerned:
"Another way of infecting while having physical access is the Auto-Starting CD function. You've probably noticed that when you place a CD in your CDROM, it automatically starts with some setup interface; here's an example of the Autorun.inf file that is placed on such CD's: [autorun]open=setup.exeicon=setup.exe So you can imagine that while running the real setup program a trojan could be run VERY easily, and as most of you probably don't know about this CD function they will get infected and won't understand what happened and how it's been done. Yeah, I know it's convenient to have the setup.exe autostart but security is what really matters here, that's why you should turn off the Auto-Start functionality by doing the following: Start Button -> Settings -> Control Panel ->System -> Device Manager -> CDROM -> Properties -> Settings"
Read this full article at Dancho Danchev
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