Blog Hacked

My friends word-press blog was recently hacked.
I am not sure of the version but it should be 2.9 or higher

Here are the screen shots.
https://img29.imageshack.us/img29/2788/96445528.jpg
https://img833.imageshack.us/img833/9703/53995861.jpg

Does anyone has any clue how this could happen?
Hosting company says it was injection attack, probably FTP id & password was compromised.

Thanks