What is going on here - this site being hacked?

See: http://urlquery.net/report.php?id=13148
Nothing here: http://www.virustotal.com/url-scan/report.html?id=1242c8298725899f46d0dbc11851dea5-1324563484
Probably hacked through Priv8SOQOR Shell By : HACKERS PALPriv
see: -http://jsunpack.jeek.org/?report=9b2ae615a67fb9e60b485b024e50f8290d08d7a5
Go to above link only if security savvy, with script protection in in a VM,
AV Cloud Engine hash for this suspicious URL is MD5: 0F552F06128F974D62282A2895A26700

polonus

Scanned the download from there, and these are the results:
http://virusscan.jotti.org/nl/scanresult/d90af4ec40ce39cad6dc3c3315cd4901d13bd9b5

Here you can look at tic.c : http://jsunpack.jeek.org/?report=851774e849d5f15d25aff6a74e75e56752ab2301
For security savvy only, with script protection and in a VM,

polonus