DMM,
The biggest problem with taking any measures against worm creators, etc., is finding them. It's relatively easy to determine contact info for someone who got infected, and thus, subsequently attacked you; but that is typically a clueless user who knows nothing about security, and should not be held to a very high level of responsibility.
If the geeks that wrote Code Red can be found, they should be tortured to death, slowly, and with intense pain, over a long period of time, televised live around the world. That is the only kind of message (IMHO) which will stop this nonsense.
Col. John