That is terrible... luckily military logins require more than a simple passcode to access. It sound like they have more than one infection on their systems causing this problem. Something that keeps putting the detected keylogger back into the system.
"Looks like Skynet is doing some *Beta- Testing*. "
Most likely some jackass or spy actually working for the gov is doing it. Could certainly be a hacker, but generally these things happen from within. I'm more surprised that news of it got out.