There are Several Viruses that use Autorun.inf files on removal drives that launch a virus file stored in the Recycle bin to infect PCs. They also copy the virus to the c:\windows\ and c:\windows\system32\ folders.
Here is a list of just some of the viruses using this method as identified by Symantec.
- W32.IRCBot
- W32.Netsky.gen@mm
- W32Downadup.B
- Hacktool.flooder
and variants of each.