Attack on HostGator and many other Server Companies using a exploit in the Cpanel of the servers are creating many problems to many people. Host Company owners, watch out for your servers news.netcraft.com/archives/2006/09/23/hostgator_cpanel_security_hole_exploited_in_mass_hack.html
There is no mass hacking going on. Sites get hacked all the time from running out of date scripts. This happens at hostgator, bluehost, hostmonster, and every other hosting company in the world. There's only so much a web host can block, and at the end of the day it's the webmasters responsibility to keep their scripts up to date.