No, that BGE file is not cracked. It's a Good Old Games package. No way they would put a virus inside it.
The infected cracked file is called dvm.dll, and belongs to the Riddick game. And I did quarantine the file, but now Windows Update is off again.
Honestly, I don't think it's a virus. My brother messed with the networking services a few weeks ago, trying to get sharing to work between two Windows 7 computers, though he didn't succeed at that.