Last days google faced a real hard time from crackers in china. Crackers exploited the loop holes in IE to steal in the account informations for google accounts of human right activists.
Google was not the only one who faced attacks under operation Aurora. Many big companies like Abobe, yahoo, Rackspace hosting, Juniper systems faced such attacks. Total of 20 comanies faced this attack originating from china. Read a New Approach to china where google is claiming such attacks on its official blog.
Watch Operation Aurora Attack live in Action
While this attack exploited deficiencies in IE6 and above and above on windows 2000, Windows XP, Vista and Windows 7 Microsoft has taken steps to release a suitable patch ASAP. It is recommended to people not to use IE until Microsoft releases a patched IE.
More Detailed info about Operation Aurora.