BikeBiz have a nice roundup on the phenomena of picking Kryponite locks using only a Bic pen. It seems that Kryptonite have been slow to react, and to be as fair as possible to them they're not alone it seems to be a generic weakness in the round key lock. Expect to see bic pens sticking out of the front of vending machines and gym lockers for the foreseeable future :-(
John Naughton in today's observer draws the parallel between Microsoft's and Kryptonite's woes, oh for 'Kryptonite Update' :-) So fingers crossed i can exchange my Kryptonite lock for free in the UK as they've just announced in the US. Either way i'll keep you posted!