“A worm is similar to a virus by design and is considered to be a sub-class of a virus. Worms spread from computer to computer, but unlike a virus, it has the capability to travel without any human action. A worm takes advantage of file or information transport features on your system, which is what allows it to travel unaided.
The biggest danger with a worm is its capability to replicate itself on your system, so rather than your computer sending out a single worm, it could send out hundreds or thousands of copies of itself, creating a huge devastating effect. One example would be for a worm to send a copy of itself to everyone listed in your e-mail address book. Then, the worm replicates and sends itself out to everyone listed in each of the receiver’s address book, and the manifest continues on down the line.
Due to the copying nature of a worm and its capability to travel across networks the end result in most cases is that the worm consumes too much system memory (or network bandwidth), causing Web servers, network servers and individual computers to stop responding. In recent worm attacks such as the much-talked-about Blaster Worm, the worm has been designed to tunnel into your system and allow malicious users to control your computer remotely.”