1.) Protect your computer. Run anti-virus software (if you decide to use Windows) and stay away from questionable sites on the internet.
Most definitely. If you are not behind a router with a but-in firewall, use a software firewall, as well.
2.) Consider not using Windows at all. Those of us who use Mac OS X don't have many security worries as those who tied themselves to Microsoft products. In the 10 years I have used a Macintosh, I have had no viruses and haven't felt the need to run virus protection because my operating system is tightly locked down.
Windows is the most targeted because it has the largest market share. Apple's "security through obscurity" is not any real protection, and OSX is only for Apple hardware. Linux is another possibility, but it has not progressed to the point that someone without knowledge of computers and operating systems could install and use it.
There are now viruses in the wild that target Apple so you may want to see about making sure you are protected.
3.) The FBI and other knowledgeable law enforcement agencies know about these viruses and remote storage. I have a friend who investigated child porn cases as a computer examiner for the FBI for most of a decade, and they can tell what was placed there remotely and what was collected by a user. However, your local authorities may not have that expertise.
Very true. The problem with this virus and others like it is that the images are not placed remotely, but are accessed directly from the computer. The virus will access them much faster than humanly possible, but it will still look exactly like someone was doing it from your computer because that is where the activity will originate.
4.) Tightly secure your home wireless network!! There are too many cases where a next-door neighbor (especially in an apartment building) has piggy-backed onto another person's wireless network to commit computer crime. The FBI (and other agencies) have kicked in the wrong door more than a few times to catch bad guys only to discover that the computers in the home are not the one's used in the offense. There's no real way for authorities to tell the difference until they get access to the systems. It gets cleared up within a day or two, but the real bad guys get plenty of warning that the authorities have discovered their crimes, and you get to repair your door, your reputation, and your piece of mind.
Amen and AMEN!!! The authorities will only have an IP address to go on. The Internet service provider will be able to tell the authorities who was using that IP address and will give them your address. This also goes for file-sharing. The RIAA/MPAA go by IP address alone. While I live out in the country, I discovered that someone was trying to piggyback on my wireless signal; a few seconds is all it took to set encryption up and cut them off.