Thanks to everyone who has posted so far. Obviously I have a lot to learn.
My site was static code, four pages of html, nothing else. Now I'm not a webmaster/guru like a lot of you people but I'm willing to learn and to take the good advice you are giving. I'm not young in years but I regularly suffer from bouts of common sense and can see what you are getting at here.
I had built this little site up to see if there was any mileage in developing a skill set that might fill up my time and earn me a bit of dinero. The site eventually had a google page rank of four. Now my page rank has dropped to 2, and is attracting attention for all the wrong reasons. Looking at webmaster tools I have noticed that between 14th Jan and 17th Jan site impressions went up from 100 to 86,500 and clicks went up from 14 to 2,700. Worrying thing is that there must be a lot of people out there who have caught a bad dose of something through clicking on the links. I cleaned the site out and locked it down on the 17th. I noticed that at first the links appeared to be harmless but they then changed and became malicious, directing to a Russian site (vrotpyluem.ru). I have not enterd this as a url because it is not a really good idea visiting this site (but i guess you guys know that so apologies).
I know that this hack was pretty damn big as I have found dozens and dozens of sites throughout my local area that have been kippered. This then led to me finding hundreds more sites accross the world (well France, Australia and the USA actually). So far I have contacted over 100 site owners. All the people who have replied so far ( and I include IT security companies!, newsapapers, church groups etc) all confirmed that after a check, they too had been hacked at around the same time. So far, all have confirmed their hosting comapny to be the same as mine. Now I may have been swimming in the shallow end of the gene pool for too long but I think that this could possibly be an attack on a webserver rather than an isolated problem down to me.
I would be grateful for an opinion.