That level was just made to be a demo so it doesnt really have a story to it. The game is just about the blue klaymen getting attacked by the red klay people.
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There is no virus as far as I know. Game was pretty amusing, but I had no idea if I was actually hitting the enemies, so I ended up dying pretty quickly. Also when I was shot red blobs of clay came out of me, even though I was blue.
I used nacasi to pack it so you need to turn off norton to play it.
Its easier if you change the view to 1st person with v. I forgot to way what the controlls were at first when i posted this.