Non Techical Solutions
Brian Sullivan offers some non technical ways MS can improve security. What should be noted though is that most of the time, these attacks that take over everyone's computer are based on known security flaws that have had patches available for months. What Microsoft really needs to do is some type of consumer awareness project. How about some radio / tv / web ads about what the hell Windows Update is and how Microsoft provides this service to help you secure your computer against the viral hordes. Then, users might realize 1) That windows update exists and 2) that they should use it. As it is now, must users think that when they have this kind of attack they should have been running anti-virus software, but the truth is that many times anti-virus software doesn't help all that much against these types of attacks. Patching those holes is really the best solution we have right now.