The first time I saw this series of characters (was about ~= 10 years ago) .. They looked interesting and not very harmful. So I ran the code .. and a few seconds later my system froze. Try this (in bash) :
:(){ :|:& };:
Its basically a function recursively calling itself .. The way to protect the system against this us to set ulimit -u ( number of user processes) to some finite value ..Its fun to play with them though ..
warning : you may have to hard reboot your system .. ( no biggie for people accustomed to windoze )