klez spoofs the from address to be any email address on that persons computer, including any email addresses stored in text files or cached copies of web pages in temporary internet files folder.
search on symantec.com for klez to find the cure.
because klez spoofs the from address, it's difficult to trace who the person whose computer is affected. check the full headers of infected mails to see which ISP the emails were sent from. check the full headers of all incoming email over the last few months (eudora lets you search the headers, don't know if outlook does as well) for the same ISP. you'll find a bunch of customers using that ISP.
send them all an email very politely saying someone using XYZ ISP has the klez virus and you're sending the email to everyone you know who uses that ISP - make it clear you are not accusing them of spreading a virus, just helping them to check their systems etc. include some basic info about what klez does (spoofing from address) etc and how easy it is to remove it. include link to klez page on symantec site.
most people will be grateful that you've done this and if someone on that list is infected, they'll clean up.
then all you gotta do is apologise to your competitor for accusing him of sending viruses :)