I also have been hacked here but on the original LinkDirectory
It had the Line // no direct access defined( '_VALID_MOS' ) or die( 'Restricted access' );
in all the php files but they found a way through the administrator/components/com_linkdirectory/toolbar.linkdirectory.php. They installed IRC bots and Phishing directories to PayPal and a bank. The site was shut down on Saturday by the hosting service. We are still working on the site cleaning it out but we may decide to install a new 1.0.12 Joomla again just in case we missed something.
What would be the easiest way to upgrade your component to the new and safer version? I noticed that after installing the newer version in a new site it responded quit differently. Can I duplicate the layout of the original component if I upgrade and will I be able to keep the layout and not lose all the links from the database? I have quite a few of them in the directories, probably close to 100 links. This is the best component available for link listings and I would hate to have to rework everything with a different link component.
Any help would be greatly appreciated.
I renamed the original folders in the admin component dir and in the components dir. I reinstalled the new Link Directory and it worked fine. The only thing is there are extra features that were not in the original. This is not a problem at all. So hopefully this moron who hacked the directory does not get in again. If there is anything I should know about security issues with the new version please post the fix here.