Microsoft AV Update Labels Chrome as Malware, Deletes Browser
The good news is Microsoft is aware of the problem and has already issued another update, one that tells MSE to chillax and leave Chrome alone.
"On September 30th, 2011, an incorrect detection for PWS:Win32/Zbot was identified. On September 30th, 2011, Microsoft released an update that addresses the issue. Signature versions 1.113.672.0 and higher include this update. PWS:Win32/Zbot is a password-stealing trojan that monitors for visits to certain Web sites. It allows limited backdoor access and control and may terminate certain security-related processes," Microsoft said in a statement.
Without the new update, attempts to reinstall Chrome are blocked, though it appears beta builds of the browser are immune. According to Microsoft, about 3,000 MSE users were affected by this. If you're one of them, open up MSE, click the Update tab, press Update, and then reinstall Chrome.