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Firewall or no firewall, a good, frequently updated ANTI-VIRUS software like Macafee or Norton is an absolute necessity. I have 300 machines running Norton's Corporate Edition which is updated nightly to be safe. Those anti-virus solutions, UPDATED FREQUENTLY (can't stress that enough) would prevent that virus and about 95% of the others. Some are so new that you can get them before the software co's have a fix/update...
What a firewall does is to create a barrier between your machine and the Internet that when properly configured, will permit only the traffic that you specify (like www, e-mail, ftp, real player) from going in and out through that barrier. If someone tried to "crack" your computer (technically, "hacking" means fixing/impoving software legally or illegaly and "cracking" is attempting malicious entry or damage to other's systems), a firewall should prevent entry from that cracker (hehehe)... Firewall's may have an additional anti-virus element that scans all in coming data for viruses but that is not the typical function of a firewall...
What does that all mean? Everyone that has a computer NEEDS frequently updated ANTI-VIRUS software. If you have a cable modem and only use your computer online sparingly, it's not a bad idea to get a firewall too. If you are online all of the time, a firewall is an absolute must.
Firewalls are not perfect, my firewall was still hacked a few months ago...
BTW - I don't like Bill Gates, I sure as heck hope I didn't sound like him :P
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