What is this 'this site may harm your computer' bug?

Yes, I am wondering if the biggest search engine Google.com is hacked? Ask me why? I was unable to open any site and its showing a message
This site may harm your computer
And When I dared to click open the link I saw a page like this:

Suggestions:
Return to the previous page and pick another result.
Try another search to find what you're looking for.Or you can continue to http://fans.wwe.com/alloutwrestlingnews/blog/2009/01/29/no_way_out_poll at your own risk. For detailed information about the problems we found, visit Google's Safe Browsing diagnostic page for this site.For more information about how to protect yourself from harmful software online, you can visit StopBadware.org.If you are the owner of this web site, you can request a review of your site using Google's Webmaster Tools. More information about the review process is available in Google's Webmaster Help Center.

In my browsing history I have never seen a warning like this (for all sites and links). I first thought its the work of some virus program that my PC caught. But a few of my friends are complaining of the same.

I checked with two browsers the Internet Explorer and Mozilla Firefox to make sure its the same status with both.

The joke is even when I searched for Google.com the result had the same message. I also searched surfing through other search engines such as Yahoo, msn and Dogpile and found even they had the same.

So started wondering if the Internet as such taken in control by a nasty HACKER or if its a bug that could be easily fixed? To this point, I am writing this post, the bug is still there !
I only wish its fixed asap and we all have safe surfing experience like before again. Did at any time such a thing happened at all? I dont recall one. Do you?