Just received this from stopbadware.org. Success in fixing this issue. If you are having hte same issue, please feel free to contact me. The hackers code was removed and the vulnerability was fixed.

E-mail content:

"We have received and processed your request for review of your website, centraloregonbuzz.com/blog/. Google's most recent test of your website found no badware behaviors on the site. As such, the Google warning page for your site has either already been removed or should be removed shortly. In addition, if your site has been listed in our Badware Website Clearinghouse, we will remove your site from the Clearinghouse list.

Sometimes website owners are confused about why Google placed a warning in the search results for their site. In many cases, a website run by an innocent site owner has been hacked by a malicious third party, causing the site to distribute badware without the site owner's knowledge. If your site was distributing badware because it has been hacked, then simply removing the bad code from your site is not enough to keep your site clean in the future. You will also need to work with your hosting provider to fix all security vulnerabilities associated with your site."