Machan this is how it should be done...
First of all you have to download this file..
http://www.sendspace.com/file/xw3n6m . But do not execute it!
Then plug in every pendrive you have that you think are infected with this autorun virus(keep pressing SHIFT key to avoid any unnessasary surprises when doing this).
After all Pendrives are detected and ok...run the downloaded exe on ur PC..Confirm all the messege boxes and wait.It will automatically remove all the autorun viruses and clean up ur pendrives. This works 100%. I myself scripted some parts of this to clean the newer versions of this ANNOYING virus.
Give this to everybody you know because if your freinds have this autorun virus the probability of ur PC getting re-infected is high.
Hope this works!!