This method of virus infection happens very often in cybercafes, and I happen to manage one. Customers usually need some files from their USB's, often for printing and saving their files. Much as you would want not to compromise the security of your machines, it's difficult to deny them the right to use their USB (and consequently the right to use their files).
And nope, I don't think it is wise to rely on antiviruses solely for this task (of course, it is best to have one). Antiviruses just perform "blacklisting" of all known malware at that time. They are ineffective for newly-created, new variants, or obscure malware. The best defense is still to completely disable the Autorun feature.
I have stumbled upon Panda Security's USB and Autorun Vaccine, a freely downloadable, tiny yet effective program that disables Autorun not only in your machine, but also on the USB Drives as well.
The Vaccine has two modes: Computer Vaccination and USB Vaccination. In computer vaccination, the Vaccine modifies some of your registry settings to disallow removable drives to automatically run when inserted. Sure, there are a lot of sites dedicated to instructing these series of registry edits to achieve this end, but nothing beats the simplicity of the one-click vaccination that Panda offers.

In USB Vaccination, Panda does an amazingly simple yet foolproof trick. Since AUTORUN.INF is the file that Windows looks for in a removable drive in order to know what action to perform upon insertion of the drive, Panda creates a blank, umodifiable AUTORUN.INF on a FAT/FAT32 USB, never to be overwritten nor removed by any malware. (For the lack of USB drive around at the moment, I haven't really tried yet if it can be set as "not hidden" and "not readable" by the 'attrib' command, but I'd bet that the move is easy to anticipate and has been seen by Panda. If you have tried, just tell me.) End result? Your USB won't be a carrier of the virus and won't spread it to "non-vaccinated" machines.
All in all, Panda USB and Autorun Vaccine worked quite well for my cybercafe machines, and for my work PC as well, and could possibly be a valuable addition to your multi-layered defense as well. The site claims that the vaccine has been tested under Windows 2000 SP4, Windows XP SP1-SP3, and Windows Vista SP0 and SP1.



